We must embrace turnover tax for long-term benefits
SEE ALSO :Best countries to do businessThere is need to have an honest conversation about ToT before casting aspersions on the Kenya Revenue Authority and the government. The informal sector has been vibrant in terms of creating employment and contributing to the gross domestic product (GDP). Reports put the sector’s contribution to the GDP at between 35 and 45 per cent. And compared to the formal sector, this sector commands a higher share of employment opportunities in the market. Unfortunately, the sector's success is not felt in the national revenue kitty. This is not a phenomenon unique to Kenya; governments in the developing world have been scratching their heads on the best way to tap this revenue with little success. So ToT is the best bet our government is counting on to cash in from this rich reservoir. Successful taxation of the informal sector comes with multiple benefits.
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