Tax has been a thorny issue in President William Ruto’s government with the opposition accusing the current regime of over-taxing the country.
However, a 2023 world taxation report by World Population Review painted a different picture.
According to the report, Ugandans and Tanzanians are most taxed in the East African Community (EAC).
Kenya was ranked position 70 globally and 19th in Africa in terms of the most taxed countries.
Uganda was the most taxed country in EAC after it was ranked 29 globally, with Tanzania coming a distant second at position 69 one above Kenya.
The Yoweri Museveni-led country was the second most taxed country in the African continent, with South Africa leading and at position 20 globally.
The list of the top 20 most taxed countries in the world and their corresponding global ranking are; South Africa (20), Uganda (29), Senegal (32), Zimbabwe (33), Guinea (34), Republic of the Congo (36), Mauritania (37), Morocco (40), Zambia (44), Namibia (45), Ethiopia (49), Algeria (54), Cameroon (55), Tunisia (57), Gabon (58), Equatorial Guinea (59), Mozambique (66), Tanzania (69), Kenya (70) and Ghana (73).
The ranking was developed by comparing income, sales, and corporate tax and then calculating an average based on the three parameters.
Income tax means the tax levied directly from personal income whereas corporate tax is levied on corporations' income or capital.
On the other hand, sales tax commonly referred to as Value Added Tax (VAT) is a consumption tax imposed by state or local governments on the sale of goods or services consumers pay when making a purchase.
Income tax which is at 30 per cent in Kenya is ranked 91 globally while corporate tax which is also at 30 per cent is ranked 38 in the world.
Kenyans pay a VAT of 16 per cent which is among the lowest in the world and ranked 93 globally.
The country could be one of the least taxed countries in the African continent with a reduction of corporate tax.
Tanzania charges 18 per cent VAT and 30 per cent in both corporate and income tax.
Uganda on the other hand has the second highest income tax percentage in the continent at 40 per cent with South Africa leading at 45 per cent.
The top ten most taxed countries in the world are; Ivory Coast, Finland, Japan, Austria, Denmark,Sweden, Aruba, Belgium, Israel and Slovenia.
