KRA revenue up 22pc year-on-year

KRA bossJames Mburu

KRA Commissioner General James Mburu.

Photo credit: File | Nation Media Group

The Kenya Revenue Authority (KRA) has recorded a 22 percent year-on-year increase in revenue collection in the 10 months to April on the back of a recovering economy from Covid-19 restrictions.

The taxman has netted Sh1.45 trillion during that period up from Sh1.19 trillion it collected last year driven by higher collections from excise duty, value added tax (VAT) and income tax supported by jobs creation, increased trade and higher consumption.

The government had in 2020 announced tax relief measures to cushion individuals and businesses from the effects of the pandemic, which affected revenue collection for the latter part of the FY 2019/20 and first half of FY 2020/21.

The fiscal stimulus package included a waiver on income taxes to individuals earning less than Sh24,000, lowered the pay-as-you-earn (PAYE) and corporation tax from 30 to 25 percent and turnover tax on small businesses to 1 per cent from three percent.

The performance sets KRA on course to meet the Sh1.74 trillion tax revenue target in the remaining months of May and June but comes at a time of increased pressure to the taxman after Parliament raised this year’s budget through the supplementary budget.

Members of Parliament (MPs) in March increased national government spending by Sh12.5 billion to the estimates presented to Parliament by the National Treasury in January.

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