KRA Surpasses Monthly Target as Tax Collection hits Kes 144.6 Billion
The latest data from the Kenya Revenue Authority (KRA) has shown that revenue collection increased to Kes 144.6 Billion for the month or March, a Kes.6.6 billion from a collection of Kes127.7 billion in February.
This translates to a performance rate of 105.1 percent surpassing Kenya Revenue Authority’s February revenue collection target. This is the highest revenue performance rate since the beginning of the Financial Year 2020/2021.
“Despite the slow economic progression, KRA registered 11.2% revenue growth collecting a surplus of Kes 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 taxman said in a statement to newsrooms Saturday.
According to KRA Commissioner General James Mburu, 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 Kes 60.751 billion, the second-highest monthly collection in its history.” He said
This is an improved performance compared to the month of February when C&BC collected Kes 51.3 billion, reflecting a growth of 24.9%. Customs & Border Control surpassed the revenue target after collecting a revenue surplus of Kes 14.409 billion in March 2021, achieving a performance rate of 131.1%.
Mburu noted that Domestic Taxes registered a performance rate of 91.4% after collecting Kes 83.378 billion. The performance was largely affected by Corporation Tax which registered a decline of 35.2%, driven by a significant decline of 62.8% in the ICT sector.
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 program, 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 technology to enhance efficiency in revenue collection. With enhanced operational efficiency, the Authority is optimistic that the landscape of revenue mobilization 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.