Of course if you're transacting millions - you will have to explain.
The cost of chasing 2k is not worthy.
But we know right now only those formally employed pay taxes.
The rest dont pay - and we know many earn better than formally employed.
This where KRA need to go.
Step one - let everyone have KRA PIN - it cost them nothing. Let them file nil returns.
Step 2 - KRA will run algorithms - to check validity - and identify the big guys.
Property tax has to be increased - including idle rural land - this only way people can start to get serious.
Mzungu had hut tax in kenya in 1900.
The current land rates in kenya are a joke - something like 2000 shs per year - in Germany or US - it serious money.
way forward - for everything there has to be a rate - say 2 percent the value of property/nss/nhif
If you live in Runda - that will mean every year you pay something like 100K - and if you live in Ruai - you pay 5k.We would then be taxing the rich - not taxing products.
So for every mobile transaction, mpesa is not alone in this field, I will have to expain to KRA the source of my cash?
Will not work. Go deposit 2K in your bank account and see if the bank will request for an explanation on the source of cash.
Government should concentrate first on landlords, who are mainly themselves. Start there before going for the real hosoras.