REVENUE COLLECTION

KRA surpasses April target by Sh6.5 billion

KRA exceeded the target despite the slow economic progression brought about by Covid-19 pandemic

In Summary
  • The taxman has continued recording outstanding revenue performance , surpassing its targets since December 2020.
  • The good revenue performance has been enhanced by the sustained implementation of compliance efforts, revenue enhancement initiatives.
The KRA headquarters at the Times Tower
The KRA headquarters at the Times Tower
Image: FILE

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

The taxman has continued recording outstanding revenue performance collecting Sh176,656 billion in April against a target of Sh170,191billion recording a performance rate of 103.8 per cent.

“The Authority has registered 23.9 per cent revenue growth compared to Sh144.06 billion collected in April 2020,” KRA said in a statement.

KRA exceeded the target despite the slow economic progression brought about by Covid-19 pandemic.

The good revenue performance has been enhanced by the sustained implementation of compliance efforts, revenue enhancement initiatives and improved service delivery to taxpayers, which has led to improved voluntary compliance.

Additionally, the remarkable performance is also attributed to enhanced active surveillance and enforcement, which has been supported by KRA’s investment in technology.

his includes integrated scanners, which have improved levels of compliance at the border points by plugging revenue leakage points.

The KRA Board and leadership have also recently focused on internal performance management aimed at enhancing staff productivity in driving revenue collection initiatives.

This was also the fifth month running that Customs & Border Control (C&BC) Department continued to record excellent performance after achieving a performance rate of 112.1 per cent with a revenue collection of Sh53.996billion.

The performance is against the April target of Sh48.150 billion.

Customs & Border Control performance is attributed to the growing number of imports in Kenya.

Domestic Taxes registered a notable performance rate of 100.2 per cent after collecting Sh122.236 billion against the April 2021 revenue collection target of Sh121.615 billion.

This performance was largely attributed to the excellent performance recorded by Corporation Tax, which registered a performance rate of 116.9 per cent.

Corporation Tax collection stood at Sh39.945billion against a target of Sh34.181billion.

PAYE registered a growth of 5.3 per cent corresponding to a performance of 98.5 per cent with a collection of Sh36.951billion.

Withholding Income Tax surpassed the April 2021 target by collecting a surplus of Sh1.5 billion. This is after registering a collection of Sh12.083billion reflecting a growth of 21.4 per cent.

Excise Domestic Tax surpassed the April target after registering a growth of 25.7 per cent.

The Excise Domestic Tax collection amounted to Sh4.966 billion exceeding the target by Sh311 million.

The Authority remains positive on revenue performance following the projected expansion of the economy by above 6.0 per cent over the medium term, compared to 0.6 per cent projected in 2020 (according to Budget Policy Statement 2021).

KRA reminds all taxpayers to file their 2020 annual tax returns before the deadline on June 30 2021.