What do you believe is the single most important factor driving up the cost of living in Nigeria?

The Kenya Revenue Authority (KRA) has raised alarm over low tax morale and high unemployment in the country, citing these factors as significant barriers to meeting its revenue targets.

This development poses a serious challenge to President William Ruto’s efforts to fund ambitious campaign promises and manage escalating public debt, especially as his administration’s new taxes have heightened social tensions amid a rising cost of living.

In its recent report, KRA revealed that low tax morale, which points to a widespread lack of confidence among taxpayers, leads to diminished compliance, and undermines the government’s capacity to fulfil its financial commitments.

Experts suggest this could be a symptom that many citizens feel disconnected from the benefits of taxation, which fosters a culture of tax evasion. This sentiment is exacerbated by persistent high unemployment, leaving many struggling to meet their tax obligations.

The KRA noted that the economic strain of joblessness diminishes the ability to pay taxes, further discouraging compliance and underscoring individuals are prioritising immediate survival over tax responsibilities.

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