Ruto To Raise Tax Rate From 14% To 22%
President William Ruto has justified the government’s proposal to tax Kenyans more, saying that it is a component of a larger plan to increase revenue and lessen the nation’s need on borrowing.
By the end of this year, the Head of State plans to increase the average tax rate in the nation from the current 14 percent to 16 percent, with the goal of reaching a rate of 20 to 22 percent by the end of his term in office.
Ruto feels that the long-term advantages will outweigh the higher taxes, despite the fact that he recognizes the financial cost Kenyans would have to incur to meet this goal.
“I want to push Kenya; maybe this year we’ll reach 16% instead of 14%. God willing, I would like to leave it between 20 and 22 percent. People will grumble, and I have a lot of explaining to do, but in the end, I think they will understand that the money we are going to borrow from the World Bank is money that other countries have saved,” Ruto remarked.
He was discussing the trade and investment prospects of Africa with students from the Harvard Business School’s Class of 2025 at a meeting held on Tuesday at State House in Nairobi.
In order to make sure that “we live within our means,” President Ruto pointed out that efforts are being made to increase tax income.
“When I first took office, I advised everyone to buckle up. I will not lead a nation that is insolvent. I will not lead a nation that is deeply in debt. We must reduce our expenditures. Furthermore, he refuted the notion that Kenya had greater taxes than other countries in the area by saying, “There is no free lunch.”
Although empirical data indicates that as of last year, our tax as a percentage of our revenues was 14%, Kenyans have been socialized to believe that they pay the highest taxes. President Ruto stated, “Our taxes are far lower than those of our peers on the continent, who average between 22 and 25 percent.
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Ruto To Raise Tax Rate From 14% To 22%
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