What we must change during taxpayers' day

Last week was the Kenya Revenue Authority’s annual jamboree, the taxpayers’ week, in which the authority celebrates premium taxpayers. I have always believed this event is more about “humanising” this traditionally terrifying institution and “normalising” payment of taxes, than it is about celebrating taxpayers. It is part of the global effort to change citizens’ perception of tax payment being a penalty to be avoided at all costs, to that of a normal obligation consistent with citizenship.

Unlike the old days when the taxman was a dour looking, over worked civil servant, today’s tax collector is a suave, friendly soul willing to discuss write-offs and installment payments over a cup of coffee, at his cost! This week’s glamour completes the narrative that paying tax is an achievement to be celebrated.

Despite the glamour however, the week’s events brought to the fore some issues that deserve consideration as the KRA plans future taxpayer events. The first issue was obvious from the optics of the event. For some reason, the entire team that took the traditional “walk with the President” to the dais comprised of dark-suited middle-aged men.

In a country where women occupy significant spaces in the public and private sector I wondered where they were on taxpayer day; is it that there are no serious institutions headed by women that excelled in this nationalistic endeavour? What did the absence of this demographic at the high table say about who the captains of industry are? Because the celebration of “excellence” in this area is also about motivation, what difference would it have made if the team accompanying the President had been truly representative of the reality of society and industry? Let me be clear, I am not talking about token appearance of women for optics. It’s a deeper issue.

Many of us, growing in a male-centric society believe that women have generally advanced due to affirmative action and favour collection and not merit. Consequently, whereas we are comfortable seeing women in politically appointive positions we get shocked when we see female captains of blue chip companies effortlessly besting their male peers.

This belief in women’s incapacity in matters industry is so deeply ingrained that it is crucial that on national events like the taxpayer day, when we are showing off not just our most successful but our most “patriotic” in industry, we deliberately celebrate the few women who have managed to wade the unfriendly anti-women business waters and made it to the top.

This is true not just on taxpayer days but on other national days when we showcase business. Not only is this just but it is also essential that our business-minded daughters have role models to aspire to.

Related to this issue is the need to rethink how KRA lists the “taxpayer celebs”. I shall say little about TSC and such governmental institutions being celebrated as major taxpayers while they are just conveyor belts of the taxes of their poorly paid employees.

Indeed, at a time when we are rationalising the public service for falling productivity, bloatedness and ghost heaviness, I am not sure whether a large tax payer base in a government ministry is a reason for celebration or moaning!

My greater concern, however, is the impression created by the current practice of celebrating absolute amounts of taxes paid as opposed to effort or efficiency in tax collection. KRA needs to rethink criteria that would encourage tax effort and efficiency. But even in the case of absolutes it is important that likes be celebrated against likes.

As happens in other awards in the business sector, it would make more sense for KRA to celebrate different cadres of institutions separately so that we have government institutions, including parastatals, grouped together while those in business are grouped in their different income categories.

This gives a more realistic impression of tax-paying commitment of the different cadre of institutions and facilitates peer motivation. The current practice of concentrating on the big boys misses the point. The greatest contributor to our taxes is the medium and small enterprises who, as a proportion of their income, pay a lot more than the celebrated big boys.