CorporateNews

Majority of Kenyans lack knowledge on tax

Over half of Kenyans or 54 per cent do not have knowledge of proposed taxes with more males than females being less knowledgeable on the new measures by the government, the Kenya National Tax Outlook Survey 2021 reveals.

An estimated 50 per cent of Kenyans find the current tax regime as unfair with only 52 per cent of Kenyans saying they filed their taxes as required.

Tax avoidance was cited by 31 per cent of respondents as the key reason why the government does not meet revenue targets, followed by corruption and theft at 26 per cent and poor economic growth at 20 per cent.

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About 14 per cent of respondents said that the Kenya Revenue Authority usually goes for unrealistic tax targets in its revenue raising plans.

The study also revealed that the public has lost faith in how the government spends collected revenues and hence are not likely comply with their duty to honour tax obligations.

As many as half of the Kenyan public feel that the current system is unfair, compared to 23 per cent who think it is fair.

Further, an overwhelming majority of Kenyans, 86 per cent, feel that there has been an enormous increase in the country’s external debt and they consider this to be a very serious problem.

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