The state has been urged to allow businesses grace period when implementing new tax regimes.
Public Finance and Taxation committee member at the Institute of Certified Public Accountants of Kenya (ICPAK) Kuraya Muraya says this will minimize disputes between business owners and the government.
"Businesses need to be given time for any change in taxes to allow them to implement these changes,” Muraya said.
He spoke on Tuesday on KTN.
Further, Muraya said there should be exceptions on who qualifies for minimum tax, especially for micro and small medium enterprises.
Minimum tax is calculated as 0.5 per cent of gross turnover less investment income.
For non-life insurance companies, minimum tax is calculated as 0.5 per cent of gross premium.
Muraya said agriculture contributes about 20 per cent of Gross Domestic Product (GDP) but has been one of the complicated areas to be taxed.
He urged farmers in the country to ensure that they keep proper records for taxation purposes.
“Adoption of bookkeeping by farmers could ensure improved Tax collection in the Agriculture sector,” Muraya said.
He challenged the government to employ more strategies in tax collection especially in the informal sector.
He said despite the turnover tax having been reduced from 3 per cent to 1 per cent, there is still a low uptake of this tax obligation by the informal sector.
