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class="jeg_search_input" placeholder="Search..." type="text" value="" autocomplete="off"> <button aria-label="Search Button" type="submit" class="jeg_search_button btn"><i class="fa fa-search"></i></button></form><div class="jeg_search_result jeg_search_hide with_result"><div class="search-result-wrapper"></div><div class="search-link search-noresult"> No Result</div><div class="search-link search-all-button"> <i class="fa fa-search"></i> View All Result</div></div></div></div></div></div></div></div></div><div class="sticky_blankspace" style="height: 60px;"></div></div><div class="jeg_ad jeg_ad_top jnews_header_bottom_ads"><div class='ads-wrapper '><div class='ads_code'></div></div></div><div class="post-wrapper"><div class="post-wrap" ><div class="jeg_main "><div class="jeg_container"><div class="jeg_content jeg_singlepage"><div class="container"><div class="jeg_ad jeg_article_top jnews_article_top_ads"><div class='ads-wrapper '></div></div><div class="entry-header"><h1 class="jeg_post_title">Kenya Lobbies Regional Peers to Adopt Digital Service Tax in Revenue Chase</h1><div class="jeg_meta_container"><div class="jeg_post_meta jeg_post_meta_2"><div class="meta_left"><div class="jeg_meta_author coauthor"> <img alt='Brian Nzomo' src='https://kenyanwallstreet.com/wp-content/uploads/2024/03/PHOTO-2024-03-05-17-47-18-e1709738386959-150x150.jpg' srcset='https://kenyanwallstreet.com/wp-content/uploads/2024/03/PHOTO-2024-03-05-17-47-18-e1709738386959-150x150.jpg 2x' class='avatar avatar-80 photo' height='80' width='80' /><span class="meta_text ">by</span><a href="https://kenyanwallstreet.com/author/brian-nzomo/">Brian Nzomo</a></div><div class="jeg_meta_date"> <a href="https://kenyanwallstreet.com/kenya-lobbies-regional-peers-to-adopt-digital-service-tax-in-revenue-chase/">November 22, 2024</a></div><div class="jeg_meta_category"> <span><span class="meta_text">in</span> <a href="https://kenyanwallstreet.com/category/african-wall-street/" rel="category tag">African Wall Street</a><span class="category-separator">, </span><a href="https://kenyanwallstreet.com/category/east-african/" rel="category tag">East-African</a><span class="category-separator">, </span><a href="https://kenyanwallstreet.com/category/geopolitics/" rel="category tag">Geopolitics</a><span class="category-separator">, </span><a href="https://kenyanwallstreet.com/category/taxation/" rel="category tag">Taxation</a> </span></div><div class="jeg_meta_reading_time"> <span> Reading Time: 3 mins read </span></div></div><div class="meta_right"></div></div></div></div><div class="row"><div class="jeg_main_content col-md-8"><div class="jeg_inner_content"><div class="jeg_featured featured_image "><a href="https://kenyanwallstreet.com/wp-content/uploads/2023/01/blog-post-5.jpg"><div class="thumbnail-container" style="padding-bottom:50%"><img width="750" height="375" src="https://kenyanwallstreet.com/wp-content/uploads/2023/01/blog-post-5-750x375.jpg" class="attachment-jnews-750x375 size-jnews-750x375 wp-post-image" alt="Tax. Image source: https://images.app.goo.gl/2Xf5QGHitmF2fmkU8" decoding="async" fetchpriority="high" srcset="https://kenyanwallstreet.com/wp-content/uploads/2023/01/blog-post-5-750x375.jpg 750w, https://kenyanwallstreet.com/wp-content/uploads/2023/01/blog-post-5-360x180.jpg 360w, https://kenyanwallstreet.com/wp-content/uploads/2023/01/blog-post-5-1140x570.jpg 1140w" sizes="(max-width: 750px) 100vw, 750px" /></div><p class="wp-caption-text">Tax. Image source: https://images.app.goo.gl/2Xf5QGHitmF2fmkU8</p></a></div><div class="jeg_ad jeg_article jnews_content_top_ads "><div class='ads-wrapper '></div></div><div class="entry-content no-share"><div class="jeg_share_button share-float jeg_sticky_share clearfix share-monocrhome"></div><div class="content-inner "><div class='heateorSssClear'></div><div class='heateor_sss_sharing_container heateor_sss_horizontal_sharing' data-heateor-sss-href='https://kenyanwallstreet.com/kenya-lobbies-regional-peers-to-adopt-digital-service-tax-in-revenue-chase/'><div class='heateor_sss_sharing_title' style="font-weight:bold" ></div><div class="heateor_sss_sharing_ul"><a aria-label="Facebook" class="heateor_sss_facebook" href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fkenyanwallstreet.com%2F%3Fp%3D141004" title="Facebook" rel="nofollow noopener" target="_blank" style="font-size:32px!important;box-shadow:none;display:inline-block;vertical-align:middle"><span class="heateor_sss_svg" 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style="font-size:32px!important;box-shadow:none;display:inline-block;vertical-align:middle"><span class="heateor_sss_svg" style="background-color:#55eb4c;width:70px;height:35px;border-radius:10px;display:inline-block;opacity:1;float:left;font-size:32px;box-shadow:none;display:inline-block;font-size:16px;padding:0 4px;vertical-align:middle;background-repeat:repeat;overflow:hidden;padding:0;cursor:pointer;box-sizing:content-box"><svg style="display:block;" focusable="false" aria-hidden="true" xmlns="http://www.w3.org/2000/svg" width="100%" height="100%" viewBox="-6 -5 40 40"><path class="heateor_sss_svg_stroke heateor_sss_no_fill" stroke="#fff" stroke-width="2" fill="none" d="M 11.579798566743314 24.396926207859085 A 10 10 0 1 0 6.808479557110079 20.73576436351046"></path><path d="M 7 19 l -1 6 l 6 -1" class="heateor_sss_no_fill heateor_sss_svg_stroke" stroke="#fff" stroke-width="2" fill="none"></path><path d="M 10 10 q -1 8 8 11 c 5 -1 0 -6 -1 -3 q -4 -3 -5 -5 c 4 -2 -1 -5 -1 -4" fill="#fff"></path></svg></span></a><a aria-label="Telegram" class="heateor_sss_button_telegram" href="https://telegram.me/share/url?url=https%3A%2F%2Fkenyanwallstreet.com%2F%3Fp%3D141004&text=Kenya%20Lobbies%20Regional%20Peers%20to%20Adopt%20Digital%20Service%20Tax%20in%20Revenue%20Chase" title="Telegram" rel="nofollow noopener" target="_blank" style="font-size:32px!important;box-shadow:none;display:inline-block;vertical-align:middle"><span class="heateor_sss_svg heateor_sss_s__default heateor_sss_s_telegram" style="background-color:#3da5f1;width:70px;height:35px;border-radius:10px;display:inline-block;opacity:1;float:left;font-size:32px;box-shadow:none;display:inline-block;font-size:16px;padding:0 4px;vertical-align:middle;background-repeat:repeat;overflow:hidden;padding:0;cursor:pointer;box-sizing:content-box"><svg style="display:block;" focusable="false" aria-hidden="true" xmlns="http://www.w3.org/2000/svg" width="100%" height="100%" viewBox="0 0 32 32"><path fill="#fff" d="M25.515 6.896L6.027 14.41c-1.33.534-1.322 1.276-.243 1.606l5 1.56 1.72 5.66c.226.625.115.873.77.873.506 0 .73-.235 1.012-.51l2.43-2.363 5.056 3.734c.93.514 1.602.25 1.834-.863l3.32-15.638c.338-1.363-.52-1.98-1.41-1.577z"></path></svg></span></a></div><div class="heateorSssClear"></div></div><div class='heateorSssClear'></div><br/><p>Kenya is committed to introducing the Significant Economic Presence (SEP) tax which will target the digital marketplace and is lobbying its partners in the East African Community (EAC) to add it to regional tax policies.</p><ul><li>The suggestion to broaden taxation on digital services in the region was raised during the 52nd East African Revenue Authorities Commissioners General Meeting convened in Nairobi. </li><li>In the meeting opened by Treasury Cabinet Secretary John Mbadi, the revenue administrations have been requested to adopt frameworks for taxing SEP on foreign firms.聽</li></ul><p>During the meeting, Mbadi called upon the regional revenue authorities to enhance collobarative strategies that will maximise domestic tax collections and imbue self-reliance. He said that this could be achieved by harmonizing tax policies and procedures in the region through consistent engagement with the East African Community secretariat. </p><div class="jeg_ad jeg_ad_article jnews_content_inline_ads "><div class='ads-wrapper align-center '><div class='ads_code'><SCRIPT language='JavaScript1.1' SRC="https://ad.doubleclick.net/ddm/trackimpj/N1741099.5084810ADVERTISINGOPS/B32246848.400359255;dc_trk_aid=592686366;dc_trk_cid=219727396;ord[timestamp];dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=;dc_tdv=1?"attributionsrc ></script></div></div></div><p>“It is wrong for us Africans, some of whom senior government officials, boarding planes in expensive suits with huge delegations flying for long hours across Europe and America going to beg for financial aid,” Mbadi said. </p><p>The regional tax revenue growth stood at 13.3% in the 2023/2024 Financial Year. Although GDP growth projections for many of the EAC member states sit above 5%, increasing budget expenditures are set to broaden deficits and soar demand for aggressive domestic revenue mobilization.</p><p>Mbadi said that Kenya was eyeing revenue mobilization of 17% of the GDP under the Medium Term Revenue Strategy. He said that this would garner over KSh 450 billion that would slash foreign debt reliance. However, to achieve this, the government would need to renew the confidence of business owners and broaden the tax base. </p><p>The bi-annual meeting also sought to discover ways the region can stamp out cross-border smuggling that hemorrhages crucial revenues in individual countries. The Institute for Security Studies (ISS) reports that Kenya loses over KSh 32 billion every year through the entry of untaxed goods such as liquor and sugar. </p><p>The commissioners perceived that creating uniform valuation of goods across the region and expediting faster information sharing on exports were formative ways of dealing with smuggling. They also agreed to ratify the Double Taxation Agreements (DTAs) and rationalise tax exemptions uniformly across the region to enhance collaboration. </p><p>KRA has clamored for the use of technology in nabbing tax cheats. Last month, the authority’s Commissioner General said that they were exploring Artificial Intelligence (AI) and Machine Learning to analyse data sets that will identify tax evasion patterns. </p><p>The regional tax heads have been sensitized to consider the transformative potential and they agreed to develop legislative frameworks that will guide decision-making on this front. 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