In a bid to increase and improve efficiency in tax collection, the Kenya Revenue Authority (KRA) has been challenged to adopt the blockchain technology to improve its services.
Speaking at the KRA Tax Summit 2018, Bitange Ndemo, the Chairman of the Kenya Blockchain Taskforce, urged the taxman to look into the new and existing technologies in order to help bring the informal sector into the tax bracket which will enable the tax body increase its revenue base.
In order to increase transparency and expand the tax base, Dr. Bitange proposed the removal of mobile money tax and increased adoption of the same.
Bitange Ndemo, Chairman, Blockchain and AI Taskforce, Kenya, spoke on the need for the Kenya Revenue Authority (KARA) to adopt Blockchain for efficient revenue collection.“We have made recommendations on the tokenization of the economy because that is mega in terms of new economies,” Said Bitange. “With tokenization, we’re able to encourage more young people to work and they’re rewarded for their work.”
Some of the suggestions presented at the KRA Summit included bringing people into a space where you can see them by not taxing mobile services and discouraging the use of hard cash. This approach would go a long way in bringing the informal industry into the digital space and allow KRA to tax this largely untaxable industry in Kenya.
