Globally, there is a significant advancement in technology that has, over time, impacted today’s digital world. Technological disruptions have become a mandatory rite of passage. Well, this too applies to Kenya Revenue Authority (KRA) iTax platform.
KRA is charged with a pivotal responsibility to collect revenue. According to Tuko News, KRA is currently working towards maximizing any available opportunity and gaps to enhance tax collection. Since the introduction of iTax, compliance level and tax revenue improved significantly. A notable success was also noted in filing tax returns, lodging of tax objections, requisition of compliance certificates and remittance of payments. Nonetheless, this success has been tempered with some new challenges. What challenges is iTax facing? Which measures can KRA take to maximize their revenue collection system?
- Adopted technology should not be limited to tax administration operations
Overall, iTax is very successful in administrative than functionality roles. To avoid this, it should encourage compliance by the otherwise ‘untaxed’ population. The efficiency of the current system is relying on responsible taxpayers too much.
If seamless systems are adopted, the agency will not only simplify its operations but ultimately widen the taxing cushion and base against evading tax. KRA can work on mapping out non-compliant landowners.
- Simplifying VAT refunds process
In addition to obtaining the right technology, KRA should work on making it easy for any taxpayer to claim input VAT refunds. Through this, more non-compliant citizens will be brought into the tax net.
To many of them, it is terrible to transact with an agency that they cannot obtain any input VAT credits. By facilitating a secure input VAT refunding process, non-compliant taxpayers will note this advantage and benefits that come with tax compliance.
- Enhancing transparency and accountability
To properly enable the use of technology, KRA should go a long way to build trust among citizens. It is only possible by being transparent and promoting 100% accountability. If Kenyans see the two virtues, they will trust the agency, thus an increase in revenue collection.
The above is not to imply that KRA isn’t properly embracing technological advancements. The agency has implemented the Integrated Customs Management System (iCMS), Cargo Scanner Management Solution and Excisable Goods Management System, and Customer Relationship Management System for smoother operations.
Overall, the iTax platform is very convenient in accessing KRA services. Follow this link to get more insight on how you can register, file returns, obtain a compliance certificate, and check your pin.
