Uasin Gishu Governor Jackson Mandago has told the Government and Kenya Revenue Authority (KRA) to seek alternative ways of dealing with local investors accused of tax evasion other than prosecution.
The governor faulted how the government is handling the local companies accused of failing to pay taxes terming the move counterproductive.
“The government and KRA should initiate amicable ways on how local companies with outstanding taxes running into billions of shillings should meet their tax obligation instead of shutting businesses,” he said adding that the move would hurt employment opportunities for Kenyans
He said it is wrong for the government to shut down local companies in connection with tax evasion.
“If we frustrate local companies over failure to pay outstanding taxes, we shall be opening opportunities for foreign investors to come and set base in the country at the expense of our investors to open shops in the country,” said Mandago.
Clear outstanding taxes
He implored KRA to come up with a more diplomatic approach when dealing with non-compliant local companies and individuals to save local investors from shutting down businesses resulting in loss of jobs.
“Closing down non-compliant local companies is counterproductive since it will lead to thousands of job losses for Kenyans at a time the country is faced with employment crisis,” added Mandago.
He, however, challenged local companies and individuals to clear all the outstanding taxes to enable the national and county governments to offer services to Kenyans.
“These companies and individuals should pay tax if they expect the county and national governments to provide better services to the people,” said Mandago.
