Ranguma urges KRA to tap more revenue from informal sector

KISUMU, KENYA: Kisumu Governor Jack Ranguma has urged the Kenya Revenue Authority (KRA) to tap the informal sector saying it remains wide open yet can contribute more to revenue collection.

Ranguma, who was a commissioner in KRA before joining politics said the economic growth of a country cannot be discussed without considering revenue collection.

"When there is more revenue collected, it means there will be better service delivery and employment opportunities," said Ranguma during the opening of taxpayers’ month at Kenyatta Sports ground in Kisumu.

He gave the example of Sweden where maximum tax rate is at 55 percent, and the citizenry are happy about it as the government provides everything.

"What surprised me was that the people of Sweden were even willing to pay more because they get a lot from the government. But that is only possible where corruption does not thrive," said Ranguma.

''Kenyans should demonstrate patriotism by paying taxes and comply to encourage development'', said Jack Ranguma.

The Governor however urged the taxman to improve its database to catch up with those who evade paying tax.

"Tax evasion is a serious economic sabotage. Failure to declare tax or evading it is worse than corruption," said Ranguma who was the founder of Tax Justice, International Network.

''When Kenya Revenue Authority performs well, there is improvement in our county'', he said, adding that "what we get as foreign aid is far much lower than what the country loses in form of tax evasion, a testimony that we can be self-sufficient if only we could pay tax promptly."

KRA is charged with the responsibility of collecting revenue on behalf of the Government of Kenya.