• Ruku said the raised tax will be sufficient to finance the development of the country’s health, education, and infrastructure sectors.
• President William Ruto on Friday said payment of taxes enables the country to finance development.
Member of Parliament Mbeere North Geoffrey Ruku on Monday said Kenya is one of the least taxed countries and any tax changes should be gradual.
Speaking during an interview on Citizen, the MP said the taxes imposed on Kenyans cannot be compared to the level at which other countries pay taxes.
“Kenya is the least taxed country in comparison to South Africa, Botswana, Norway, and Germany. We, therefore, need to be taxed more gradually,” he said.
Ruku noted this to be the main reason why the government is proposing to raise taxes from 14 per cent to 16 per cent.
He said Kenya is quite at the bottom when it comes to the payment of taxes as Kenyan tax revenue to GDP is 14 per cent compared to other nations which are 23 per cent.
The raised tax will be sufficient to finance the development of the country’s health, education, and infrastructure sectors.
President William Ruto on Friday said payment of taxes enables the country to finance development.
"Our taxes build our roads, run our hospitals, schools, courts of law, and provide funds for the vulnerable. They also provide defence and national security services," he said.
Ruto said paying taxes is the only way to lay the foundation for the pursuit and achievement of economic growth, sustainable development, and prosperity that can be shared by all.
By paying the taxes, he said there will be improved provision of public goods which demonstrates the advantages of living in a community.
Different leaders recently had different opinions on the imposed taxes saying the changes would affect income tax, value-added tax, and various fees and penalties as well as compliance requirements.