REVENUE COLLECTION

KRA surpasses its October target, collects Sh154.38 billion

PAYE registered a collection of Sh37 billion against a target of Sh36.46 billion.

In Summary

• Domestic Taxes recorded a performance rate of 106.5 per cent with a collection of Sh96.62 billion against a target of Sh90.7 billion.

• The Gross Domestic Product is expected to grow by 5.3 per cent in FY 2021/22 as per the 2021 Budget Policy Statement.

KRA Commissioner General James Mburu
KRA Commissioner General James Mburu
Image: Courtesy

The Kenya Revenue Authority has said that it collected Sh154.38 billion during the month of October, against its target of Sh142.285 billion.

KRA Commissioner General Githii Mburu said on Friday the authority recorded impressive performance of 108.5 per cent, and growth of 23.3 per cent, sustaining positive performance into Quarter Two of the Financial Year 2021-22.

Mburu said the authority commenced the new financial year on an upward trajectory after surpassing its July-September target of Sh461.65 billion by Sh15 billion, recording a 30 per cent growth.

The commissioner said that during the month under review, Customs and Border Control exhibited excellent performance after collecting Sh57.37 billion against a set target of Sh51 billion.

Domestic Taxes recorded a performance rate of 106.5 per cent with a collection of Sh96.62 billion against a target of Sh90.7 billion.

PAYE registered a collection of Sh37 billion against a target of Sh36.46 billion.

He said the sustained strong performance is a reflection of the improving global economic environment as well as the implementation revenue enhancement initiative by the authority.

The Gross Domestic Product is expected to grow by 5.3 per cent in FY 2021/22 as per the 2021 Budget Policy Statement.

The country’s Gross Domestic Product ratio currently stands at 13.8 per cent, indicating that the need to continue enhancing tax collection and reducing tax expenditure in the forms of exemptions and incentives to achieve the desired rate of over 20 per cent.

However, Kenya tax gap remains high (45 per cent for VAT as reported by IMF in 2017), indicating the need to sustain tax base expansion efforts and upscaling the fight against tax evasion and illicit trade.