Kenya Revenue Authority is projected to collect Sh3 trillion in the next financial year (2023-2024), National Treasury Cabinet Secretary Njuguna Ndung'u told MPs on Tuesday.
Appearing before the Budget and Appropriations Committee of the National Assembly, the CS said the target will be realised through a combination of administrative and tax policy reforms.
He said KRA will improve tax compliance through a reduction of the VAT gap from 39.9 per cent to 19.8 per cent and a reduction of the Corporate Income Tax gap from 32.2 per cent to 30.0 per cent.
"We will also integrate the tax system of corporate with telecommunication companies," he said.
Ndung'u further said the government is keen on expanding the tax base to hit the target.
"We will also roll out measures at the customs and border control by leveraging on technology and enhanced data analytics to enhance revenue per unit," he said.
He added that the government will also upscale the technical capacity of KRA through skills, technology and additional staffing.
Ndung'u further said the government will eliminate non-priority expenditures, reduce tax expenditures and waivers and scale up the use of Public-Private Partnerships.
The CS told the committee the government will also roll out an end-to-end e-procurement system, and streamline the initiation, execution, delivery and sustainability of public investment projects.
He noted that the government's total expenditure during the period is projected at Sh3.6 trillion.
"The fiscal deficit (inclusive of grants) is projected at Sh720 billion," he said.
Ndung'u said the deficit will be financed by external (Sh198.6 billion) and domestic borrowing (Sh521.4 billion).
