Crack down on multi-billion shilling illicit trade before increasing taxes

The Anti-Counterfeit Authority (ACA) says the trade in counterfeit or smuggled goods has reached unprecedented levels. It was worth more than Sh800 billion in 2018 and ACA fears that number has hit Sh1 trillion in the past year. [iStockphoto]

Hard-pressed consumers fear they are the ones who must tighten their belts yet again following President William Ruto's declared intention to increase tax revenues by Sh500 billion by June this year.

It is a challenge for Kenya Revenue Authority, considering it collected Sh2.03 trillion in the 2021/22 Financial Year. That was the first time in history that KRA passed the Sh2 trillion mark as a series of tax increases begun to bite. The president, however, sees scope for yet more growth in State coffers. He said most of the increases can come from VAT taxes that are never submitted, adding that only 60 per cent of collectable VAT is currently paid to KRA.