KENYA REVENUE AUTHORITY RECORDED THE HIGHEST REVENUE COLLECTION

Kenya Revenue Authority recorded the highest revenue collection. PHOTO /CORRESPONDENT

KRA SUSTAINS OUTSTANDING REVENUE PERFORMANCE TREND

 

By Donald Kogai

 

Kenya Revenue Authority (KRA) recorded the highest revenue

performance rate since the beginning of the Financial Year

2020/2021 after collecting Kshs 144.6 billion in March 2021

surpassing the revenue target. This is an outstanding performance

compared to the month of February when KRA collected Kshs 127.7

billion registering a performance rate of 105.1% to surpass its

February revenue collection target.

 

Despite the slow economic progression, KRA

registered 11.2% revenue growth collecting a surplus of Kshs 6.6

billion in March 2021. This was the fourth month running that KRA

posted an improved and above target performance since December

2020.

 

The good revenue performance has been enhanced by the sustained

implementation of compliance efforts, revenue enhancement

initiatives and improved service delivery to taxpayers.

 

In the fourth month running, Customs & Border Control (C&BC)

Department continued to record excellent performance after

achieving a growth of 47.3% with a revenue collection of Kshs

60.751 billion, the second highest monthly collection in its

historyThis is an improved performance compared to the month of

February when C&BC collected Kshs 51.3 billion reflecting a growth

of 24.9%. Customs & Border Control surpassed the revenue target

after collecting a revenue surplus of Kshs 14.409 billion in March

2021, achieving a performance rate of 131.1%.

 

 

Domestic Taxes registered a performance rate of 91.4% after

collecting Kshs 83.378 billion. The performance was largely

affected by Corporation Tax which registered a decline

of 35.2%, driven by significant decline of 62.8% in the ICT sector.

 

 

PAYE registered improved performance of 110.7% with collection

of Kshs 34.595 billion accumulating a surplus of Kshs 3.339

billion. The performance was boosted by revenue collection in the

public sector which had a growth of 5.7%.

 

 

Withholding Tax registered revenue growth of 15.4% with a

collection of Kshs 9.418 billion which implied performance rate

of 106.0%. Domestic Excise Duty recorded a performance rate

of 61.9% after collecting Kshs 4.521 billion.

 

 

Domestic Value Added Tax (VAT) collection amounted to Kshs 17.017

billion registering improved growth of 4.2% compared

to 1.6% growth in February 2021. This was equivalent to a

performance rate of 81.3%.

 

 

With the Kenyan economy anticipated to expand by

above 6.0% over the medium term, compared to 0.6% projected in

2020 (according to Budget Policy Statement 2021), the country

remains positive on revenue performance. KRA is also

implementing a number of revenue enhancement measures. These

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.

 

 

KRA also continues to leverage on technology to enhance efficiency

in revenue collection. With enhanced operational efficiency, the

Authority is optimistic that the landscape of revenue mobilisation

and collection in this country will be completely changed. KRA has

also intensified its fight against tax evasion to ensure that no

revenue is lost.

 

KRA reminds 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 1st January 2021. 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 30 June 2021.

 

KRA appreciates compliant taxpayers for honouring their tax

obligation. Their contribution through payment of taxes has

furthered Kenya’s economic sustainability and safeguarded the

sovereignty of this great nation. Through your support, KRA is

optimistic that it will perform better in the coming months.

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