By Mercy Mwaniki
mercyjesca23@gmail.com
When a conversation about tax is brought up among the youth, little is understood. Furthermore when you tell a twenty-year old with a KRA pin that he or she needs to file for nil returns and when they fail to comply, they will get follow-up questions that are supposed to justify why they should. But why pay for penalties when you are unemployed?
Not many understand this concept and I can relate. Personally, I thought filing a return was an exhaustive process, but then I realized it was the opposite. Five minutes are more than enough to file a nil return. With the experience of filing nil returns, once you start earning or become self-employed, filing for both individual and non-individual taxes will no longer sound as complex. This is an annual activity thus all you need is to meet the deadline date which is June 30th of every year.
Most of the information youths consume come from what the older generations’ say, each one has a different experience thus opinions tend to differ. In as much as sensitization has been done on the tax conversation, very few young people are involved. Some of them have the PIN, but wait until they get their first job, to realize its importance. Some know VAT as they can tell when an item they used to buy for sixty shillings is now going for eighty shillings, they understand that the tax has been increased thus the resultant increase in price. Businesses have to make money too, right?
Almost every employer today is asking for a KRA pin when one is looking for a job, thus youths need to understand that you cannot delay getting one or ignore it just because you are a student or unemployed. Most of the side hustles many are currently doing might turn out to be their businesses in the future. With zero tax education or any form of involvement with taxes, it will be tough for any start-up in any industry.
Tax education is very important and that is why the Kenya Revenue Authority has come up with various ways to simplify tax services. Even the language used through various programs such as the eTIMS, which enables either a buyer or seller to electronically initiate invoices, has been simplified. As the world delves deeper into technology, KRA is not left behind, ensuring you as a taxpayer is also moving forward when it comes to paying taxes and filing your returns.
Looking at the past 2024 Finance Bill protests which led to President Ruto not signing the bill and withdrawing it, it’s important for the youth of Kenya particularly GenZs to understand how taxation influences our economy, our opportunities and our future. Attend tax education forums, ask questions and demand transparency. A well informed generation is a very strong and influential one__ and that starts with you.