Kenya Revenue Authority(KRA) collected Kes 154.383 Billion in Q2, 2021/22 financial year, a performance rate of 108.5% and a growth of 23.2% from a Kes 142.285 Billion target.
KRA began the 2021/22 financial year on a positive note, surpassing its July-September 2021 target of Kes 461.653 Billion by Kes 15.053 Billion, a growth of 30%.
Cumulatively, KRA collected Kes 631.090 Billion in July-October 2021 against a target of Kes 603.939 Billion, a performance rate of 104.5% and a growth of 28.3%, a surplus of Kes 27 Billion.
KRA registers improved collections in Customs and Border Control, Domestic Taxes
Domestic taxes recorded a performance rate of 106.5% with a collection of Kes 96.616 Billion, a surplus of Kes 5.9 Billion.
The Customs& Border control collected Kes 57.374 Billion, a surplus of Kes 6 Billion and a performance rate of 112.1%. PAYE collected Kes 37.001 Billion against a target of Kes 36.462 Billion, a performance of 101.5%
According to KRA Commissioner General Githii Mburu, the improved tax collection is a result of revenue enhancement initiatives by the Authority.
The tax authority said it intends to engage in alternative dispute resolution. Currently, there are over 570 tax disputes tied up in Courts with the assessment of Kes 150 Billion.
Kenya’s tax to GDP currently stands at 13.8 per cent indicating the need to enhance collections and reduce exemptions and tax incentives, so as to achieve the desired rate of over 20%.
Kenya’s tax gap remains high at 45% for VAT as reported by the IMF in 2017, indicating the need to sustain tax base expansion efforts and upscale the fight against tax evasion and illicit trade.
