THUMB UP

Treasury praises KRA for improved collection

The tax agency collected Sh1.44 trillion in the financial year ended June 30, Sh 100 billion more compared to the previous year

In Summary

•Even so, it failed to meet the Sh1.605 trillion target as set by Treasury even after the threshold was revised downwards from Sh1.69 trillion.

The Acting Cabinet Secretary for the National Treasury and Planning Hon. Ambassador Ukur Yattani (left) with Kenya Revenue Authority (KRA) Commissioner General Mr Githii Mburu during a courtesy call meeting at the National Treasury building in Nairobi.
Image: COURTESY

The National Treasury has said there was remarkable improvement tax collection by the Kenya Revenue Authority for the year ended June 30, 2019.

Speaking when he hosted KRA's top leadership in his office, Commissioner, acting Treasury Cabinet Secretary Ukur Yattani said he was impressed by the tax collector’s efforts that has seen revenue collection double in seven years.

KRA collected Sh1.44 trillion in the financial year ended June 30, Sh 100 billion more compared to the previous year.

 
 

Even so, it failed to meet the Sh1.605 trillion target, even after the threshold was revised downwards from Sh1.69 trillion. In 2017/18, the taxman missed its target by Sh45 billion and Sh50 billion in 2016/17.

The CS promised to gradually help double KRA’s administration requirements.

Former KRA commissioner general John Njiraini early this year told the Parliamentary Finance Committee that the agency is under funded and sought that it be allocated at last 10 per cent of the annual collection target.

Yatani assured KRA of full support in order to meet and surpass the revenue collection targets while enabling ease of doing business in the country.

Treasury is expecting KRA to collect Sh1.8 trillion in the current financial year.

He further asked KRA’s top management to strategies on how best to seal porous borders to check influx and flight of contraband, saying the government has empowered the agency with multi-agency experts.

Treasury said it will review the economic policies to ensure economic growth and more revenue that will fund and sustain public service programmes.

 
 

‘’New performance strategies between the National Treasury and KRA are paramount in our bid to ensure self financial sustenance as well as reduction of foreign debts,’’ Yattani said.

Other areas discussed include; how to address the pending Value Added Tax (VAT) refund challenges, how to deal with corruption, tax evasion schemes and money laundering.

KRA commissioner general Githii Mburu expressed optimism on achieving revenue targets in the coming years.

He said there are various trans-formative changes at KRA and strategies to ensure revenue administration is efficient and effective.