Safaricom has been named the highest tax payer in Kenya after contributing 19.9 billion Kenyan shillings (US$256,000) to the Treasury in the last financial year.
IDG news services reported tha the telecommunications company was honored by the Kenya Revenue Authority at an award ceremony on Tuesday to recognize the highest contributors to the country’s economy.
Although the government has reduced the Value Added Tax from 18 percent in 2003 to 16 percent, the KRA said it managed to record improved revenue collection of 434 billion shillings in the 2007/2008 fiscal year.
“We are now set to transform our country to a middle-income status in line with the Vision 2030, a long-term strategy through which we aim to achieve and sustain a growth rate of 10 percent per year,” said President Mwai Kibaki.
With 12 million mobile phone subscribers, Safaricom is required to pay a 26 percent tax on all calls. Kenya has one of the highest mobile phone service tax regimes in the region.
