KRA SUSTAINS EXCELLENT REVENUE PERFORMANCE INTO THE HALF YEAR

 3,722 views

The Kenya Revenue Authority (KRA) has sustained an above average revenue performance into the new year, with a half year collection of KShs.976.659 billion, against a target of KShs.929.127 billion thanks to higher tax compliance.
The performance is mainly attributed to increased compliance that led to a collection of a KShs.47.532 billion surplus. The outstanding performance has been the order of the day in the last five months (August – December) with KRA surpassing both exchequer and overall revenue targets. KRA surpassed both the overall and exchequer targets in December 2021 by KShs.10.152 billion and KShs.8.257 billion respectively.

Customs and Border Control sustained excellent performance for the half year with a collection of KShs.355.787 billion against a target of KShs.322.737 billion, a 19.5 per cent growth. The performance was buoyed by a 25.4 per cent growth in trade taxes and 9.6 per cent growth in petroleum taxes. Trade taxes registered KShs.233.165 billion
Domestic Taxes performance improved, with a 30.8 percent growth compared to a similar period last year, with a collection of KShs.618.312 billion against a target of KShs.603.870 billion, a performance rate of performance rate of 102.4 per cent.

Employment revenue grew in the half year, pushing Pay As You Earn (P.A.YE) collection to KShs. 221.328 billion against a target of KShs.209.339 billion with a performance rate of 105.7 per cent. Value Added Tax (VAT) collections grew by 40.2 per cent with a collection of KShs.121.044 billion against a target of KShs.119.543 billion. This performance comes on the backdrop of enhanced compliance and economic recovery. Corporation tax collection on the other hand stood at KShs.107.407 billion growing at 17.3 per cent over the half year. This performance was driven by increased remittance from, Agriculture, Manufacturing, Financial, Wholesale & retail and Transport sectors.

KRA has in the recent past focused on implementation of key strategies enshrined in the 8th Corporate Plan, which include, use of data, intelligence, technology to unearth tax evasion and enhance tax processes. These strategies have led to better compliance and tax base expansion. KRA has also strengthened integrity measures both with taxpayers and staff.

Leave a Reply

Your email address will not be published.