REVENUE

KRA surpasses March collection target by Sh6.6 billion

This was the fourth month running that KRA posted an improved and above target performance since December 2020.

In Summary
  • The improved revenue performance has been attributed to  the sustained implementation of compliance efforts
  • KRA is also implementing a number of revenue enhancement measures.
KRA Commissioner General James Mburu
KRA Commissioner General James Mburu
Image: Courtesy

The Kenya Revenue Authority (KRA) has surpassed its monthly collection target, for the fourth time in a row.

In a statement released early Saturday, the revenue agency said it collected Sh144.6 billion in March, highest revenue performance rate since the beginning of the Financial  despite a challenging economic environment brought about by Covid-19.

''This is an outstanding performance compared to the month of February when KRA collected Sh127.7 billion registering a performance rate of 105.1 per cent to surpass its February revenue collection target,'' KRA said in a statement. 

Despite the slow economic progression, it registered 11.2 per cent revenue growth collecting a surplus of Sh6.6 billion in March 2021.

This was the fourth month running that KRA posted an improved and above target performance since December 2020.

The improved revenue performance has been attributed to  the sustained implementation of compliance efforts, revenue enhancement initiatives and improved service delivery to taxpayers.

The agency's Customs & Border Control (C&BC) Department recorded  a growth of 47.3 per cent with a revenue collection of Sh60.751 billion, the second highest monthly collection in its history. 

This was an improved performance compared to the month of February when it  collected Sh51.3 billion reflecting a growth of 24.9 per cent.

The department surpassed the revenue target after collecting a revenue surplus of Sh14.409 billion in March 2021, achieving a performance rate of131.1 per cent

Domestic Taxes registered a performance rate of 91.4 per cent after collecting Sh83.378 billion.

The performance was largely affected by Corporation Tax which registered a decline of 35.2 per cent, driven by significant decline of 62.8 per cent in the ICT sector.

PAYE registered improved performance of 110.7 per cent with collection of Sh34.595 billion accumulating a surplus of Sh3.339 billion. 

The performance was boosted by revenue collection in the public sector which had a growth of 5.7 per cent.

Withholding Tax registered revenue growth of 15.4 per cent with a collection of Sh9.418 billion which implied performance rate of 106 per cent.

Domestic Excise Duty recorded a performance rate of 61.9 per cent after collecting Sh4.521 billion.

Domestic Value Added Tax (VAT) collection amounted to Sh17.017 billion registering improved growth of4.2 per cent  compared to 1.6 per cent growth in February 2021. This was equivalent to a performance rate of 81.3 per cent.

The agency said that with the country's economy Kenyan anticipated to expand by above six per cent over the medium term, compared to 0.6 per cent projected in 2020 , it  remains positive on revenue performance.

KRA is also implementing a number of revenue enhancement measures.

They include revamping the audit function, tax base expansion and enhanced debt programme, implementation of post clearance audits, comprehensive audit of all exemptions, enhanced scanning and intelligence led verification of cargo at the ports of entry.

It reminded  all taxpayers to file their 2020 annual tax returns in good time.

''The filing for the 2020 year of income is on, having kicked off on  January 1. All annual tax returns for both individuals and entities from January to December 2020, should be submitted online on the iTax platform on or before  June 30,'' KRA said.