The East African Community (EAC) revenue commissioners have agreed to improve income tax compliance of high net worth persons and SMEs in an initiative to address issues surrounding tax administration and reduce revenue loss.
This agreement was made during the 44th East African Revenue Authorities Commissioners General (EARACGs) meeting held in Zanzibar few weeks ago. The meeting was attended by Commissioner Generals and senior officials from Revenue Authorities in Tanzania, Rwanda, Uganda, South Sudan, Burundi, Kenya, and the Zanzibar Revenue Board.
The attendees noted that for the ten months of the 2017/2018 financial year, the Revenue Authorities (RAs) posted an average revenue increase of 16.1 per cent compared to 14.5 per cent in November 2017.
Other Revenue Enhancement Initiatives
The RAs also agreed to implement the EAC Double Taxation Agreement (DTA) in order to promote cooperation in tax-related matters, increase mutual assistance, and share information.
According to the EAC Commissioners’ press statement, “integrity is one of the key areas that have direct impact on the success of Revenue Authorities across the region.” Since integrity levels are on a decline, the RAs consented to improve the “development of investigators to handle complicated cases,” carry out lifestyle audits of employees, prosecute those implicated, and working with other agencies to and taxpayers to boost integrity.
