The Kenya Revenue Authority (KRA) has recorded a Sh41 billion increase in revenue collection in December driven by heightened economic activities during the festive month.
Data from the National Treasury shows KRA collected Sh180.7 billion during the month, a sharp rise from Sh139.6 billion collected in November.
It is also Sh16 billion more than the Sh166 billion that the taxman collected in December 2020 underlining steady recovery of the economy after gradual easing of Covid-19 containment measures.
This has pushed KRA’s half-year revenue collection to Sh976.6 billion against a targeted Sh929.1 billion boosted by higher tax compliance during the period.
The growth was driven by a 19.5 per cent surge in customs revenue which hit Sh355.7 billion buoyed by a 25.4 per cent growth in trade taxes and 9.6 per cent growth in petroleum taxes which hit Sh122.6 billion.
Domestic taxes also grew 30.8 per cent compared to a similar period in the previous financial year to Sh603.8 billion.
Meanwhile, Pay As You Earn (PAYE) collections grew to Sh221.3 billion against a target of Sh209.3 billion buoyed by gradual growth in employment following the continuing economic recovery.
Value Added Tax (VAT) revenue grew 40.2 per cent to Sh121 billion which the taxman attributed to enhanced compliance efforts and economic recovery while corporation tax collection grew 17.3 per cent driven by increased remittance from agriculture, manufacturing, financial, wholesale and retail, and transport sectors.
KRA said it has intensified use of tools such as data analytics to unearth unpaid taxes and enhanced technology use to rope in more taxpayers.
“Some of the strategies include extensive use of data and intelligence to unearth unpaid taxes, use of technology to simplify tax processes, taxpayer engagements and education, customer support programme which have led to improved voluntary compliance and tax base expansion which is aimed at boarding taxpayers previously not paying taxes,” said KRA.