Kenya’s indirect tax system, which includes value-added tax (VAT), excise duties, and customs duties, plays a crucial role in the country’s fiscal policy by generating substantial revenue and promoting economic development, though compliance challenges remain for some businesses.
Compliance with VAT regulations remains challenging for some Small and Medium Enterprises (SMEs) due to complex administrative procedures. Excise duties aim to discourage consumption of harmful products while generating revenue for public expenditure. Customs duty modernization efforts, such as the Single Customs Territory, have streamlined trade facilitation and enhanced revenue collection.
Kenya has implemented various excise duty reforms to broaden the tax base and improve compliance. Compliance with indirect tax regulations, particularly for SMEs, continues to be a challenge due to complex administrative requirements. Ongoing efforts to modernize customs administration and combat illicit trade activities are intended to further strengthen the indirect tax system.
Source: businessdailyafrica.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
