Experiences across the world show that digital technologies provide governments, businesses and society, in general, with potent tools that can help to combat retrogressive practices, including illicit trade and tax evasion. TAX STAMPSIn using tax stamps, Kenya has learnt useful lessons. First is that, while tax stamp technology is now well developed, its effectiveness, especially in combating tax evasion, depends largely on the extent to which it is infused into other tax compliance processes. EXCISE TAXATIONThirdly, because of the nature and impact of excise taxation, schemes to curb illicit trade and tax evasion will almost always result in significant resistance from those affected. This probably explains why implementation of tax stamp systems almost always brings about significant controversies globally, including sabotage schemes hatched by cartels.

Source: Daily Nation May 09, 2018 18:33 UTC