The US ambassador to Kenya Meg Whitman has expressed her dissatisfaction with president William Ruto’s recent declaration that he plans to increase the tax rates from 14-22% by the end of his term.
Speaking at Citizen TV on Wednesday night, the ambassador said that there is need for taxation consistency in order to foster a consistent economic environment.
She said that when a tax has been introduced it should be given time before another is introduced.
She said that a tax should be given between 3-5 years because businesses require time to make investments and a return horizon.
“You don’t expect that you are going to make your money back in a year but five years, six years, seven years; so that tax consistency is just equally important.” She said.
She also said that if the government is planning to increase taxes they should first create jobs to increase the tax base. This way people won’t have to suffer even if the taxes are increased.
“There’s two ways; to increase taxes and also expanding the tax bases which is the number of people (being taxed) and that’s why jobs, jobs are so important. Good paying jobs, with a steady paycheck and some benefits
“When more people have a steady income they can pay taxes so you expand the number of people and not just go for the same people.”
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