IMF is growing desperate and impatient with Kenya as it now forces RUTO to increase taxes for Kenyans – Look!

Thursday, January 18, 2024 – The International Monetary Fund (IMF) has incited President William Ruto to overtax the already overtaxed Kenyans to recover their money.

In a statement, IMF Executive Directors called for urgent implementation of tax reforms announced by the Treasury.

The directors noted that it was timely for Kenya to urgently adopt the measures outlined in the Medium-Term Revenue Strategy (MTRS) which covers the financial year 2024/25 to 2026/27.

"On tax collections, Directors expressed concerns over recent shortfalls and called for urgent implementation of corrective measures," read part of a statement from IMF.

The MTRS was proposed in September 2023 by Treasury Cabinet Secretary Njuguna Ndung'u to introduce a new tax policy for Kenyans.

It also called for the introduction of various taxes, including the wealth tax, minimum tax, increased Value Added Tax (VAT) on select products, and VAT on education and insurance services among others.

Other new taxes include a carbon tax, surcharge tax, and motor vehicle circulation tax.

Meanwhile, the IMF called upon Kenya to manage fiscal risks proactively, including financial bills. 

The directors also encourage strengthening the debt management capacity.

IMF also lauded Kenya for the recent monetary policy tightening implemented by President William Ruto.

"They also positively noted efforts to enhance the effectiveness of the monetary policy framework and the efficient functioning of financial markets," read the statement in parts.

CS Ndung'u proposed the reduction of the corporate income tax, phasing out the preferential corporate tax, reviewing the Pay As You Earn (PAYE), and reviewing the exercise duty on betting and gaming taxes.

The CS also proposed the increase of a few taxes, including the exercise duty on alcoholic products, tobacco, and non-alcoholic beverages.

The Kenyan DAILY POST.

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