Tax Incentives and exemption regime in Kenya: Is it working?


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Post Date: 18 October 2012


Governments undertake tax reforms for a number of reasons, some of which include simplification of the tax system; addressing the equity question in the distribution of tax burden; strengthening tax administration and ensuring revenue adequacy. Indeed, the drivers and emphasis on tax reforms will vary from one country to another. Studies1 show that Kenya’s tax reforms are geared towards introduction of new taxes or new rates of existing bases, the need to widen tax bases and reduce exemptions as well as introduce more stringent administrative changes to seal loopholes and appropriate sanction measures.

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