(PHOTO COURTESY)
In the 2021/22 budget statement, Treasury cabinet secretary noted that the country’s tax policies are spread across various statutes which are amended every year during the budget process creating uncertainty in tax legislation.
The cabinet secretary indicated that the government is in the process of developing a National Tax Policy Framework that would not only enhance administrative efficiency of the tax system but provide consistency and certainty in tax legislation and management of expenditure.
Taxes perform specific functions which include but are not limited to raising money to finance public services, providing economic stimulus, promoting equality in the society through redistribution of resources and encouraging changes of behaviour.
A tax system should generate sufficient revenues to enable the government to meet its objectives and improve the welfare of the citizenry. This is mainly achieved through introduction of new taxes, changes to tax rates and bands or reliefs. These are also geared towards provision of economic stimulus and making inflation adjustments.
