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
history. This 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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