Challenges of Electronic Commerce on Tax: Towards a Suitable Tax Policy on E-commerce for Sustainable Development in Kenya

Abstract

This dissertation has the promotion of sustainable development in Kenya 1 as its main agenda. This would be achieved through the use of a suitable tax policy on electronic commerce (e-commerce). In Kenya, development is an exclusive government agenda. Public involvement in the agenda is missing. Formulation and application of policy is entirely handled by the government. The Kenyan culture has not fully appreciated the role of civil society on how it can assist the public and also in educating the public. As a result, the government suffers from limited policy input. Policy is usually formulated by groups of civil servants. This usually anses from reports from retreats and workshops organized for such purposes. Such reports are never opened for public and/or expert debate before implementation. The government has not formulated an accommodating policy to guide its co-operation with civil society-. The only changes in civil society have only been evident in the last decade. Several private lobby groups have come to be assertive in articulation of their' positions to the government. However there is no documented connection between what they suggest and what the government does. Further, their contributions are more often than not viewed by the 1 government as an intrusion into its domain. In the above context, it is therefore difficult to lobby for any development agenda without the government's involvement. Any proposals must, after formulation, be channeled through government process for them to see the light of day. This is, of course, unless drastic changes are made in the manner the government operates. Such proposals must therefore be made in a manner to identify what the government ought to do. This, however, does not mean a total ignorance of the role private initiatives should play in development. It is in this context that the problem that ought to be addressed IS identified.