KENYA RISES 32 PLACES IN WORLD BANKS’S PAYING TAXES RANKING

NAIROBI, Kenya has jumped 32 places in the World Bank’S Paying Taxes report to the 92nd position, up from the previous position 125 out of 190 economies globally.

According to the latest report released here Tuesday, the 26 improvement for Kenya was driven by use of technology in filing tax returns which had improved efficiency and increased accountability.

According to the latest tax report by the World Bank and the international accounting firm of PriceWaterhouseCoopers, the decision by the Kenya Revenue Authority to introduce online filing of tax returns had simplified and reduced the burden of tax compliance on businesses and individuals.

On average, the report finds that medium-sized companies in the country pay 9.4 per cent less tax compared with the overall sub-Saharan average of 46.8 percent and it takes an average of 125 hours to file returns against a global average of 195 hours.

The government has, however, been urged to broaden the tax bracket so as to reduce corporate tax as well as the country’s average tax rate which is high compared with many countries ranked in the survey.

The report wants the government to carry out more taxpayer sensitization to help the public embrace online tax filing and to further reduce the number of tax payments by streamlining the tax system.

The World Bank called on African governments to invest in modern communication infrastructure to support tax system reforms across the continent.

Source: NAM NEWS NETWORK