KRA tax revenue: The Kenya Revenue Aut**rity has recorded the highest revenue performance rate since the beginning of the Financial Year 2020/2021 after collecting Ksh144.6 b***ion in March 2021, surp***ing its target. This is an outstanding performance compared to the month of February when KRA collected Ksh127.7 b***ion, registering a performance rate of 105.1% to surp*** its February revenue collection target.
Despite the slow economic progression, KRA registered 11.2% revenue growth, collecting a surplus of Ksh6.6 b***ion in March 2021. This is 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 Ksh60.751 b***ion, the second highest monthly collection in its history. This is an improved performance compared to the month of February when C&BC collected Ksh51.3 b***ion, reflecting a growth of 24.9%. Customs & Border Control surp***ed the revenue target after collecting a revenue surplus of Ksh14.409 b***ion in March 2021, achieving a performance rate of 131.1%.
Domestic Taxes registered a performance rate of 91.4% after collecting Ksh83.378 b***ion. 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 Ksh34.595 b***ion ac***ulating a surplus of Ksh3.339 b***ion. The performance was boosted by revenue collection in the public sector which had a growth of 5.7%.
With**lding Tax registered revenue growth of 15.4% with a collection of Ksh9.418 b***ion which impl*** performance rate of 106.0%. Domestic Excise Duty recorded a performance rate of 61.9% after collecting Ksh4.521 b***ion.
Domestic Value Added Tax (VAT) collection amounted to Ksh17.017 b***ion 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.
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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 taxman is optimistic that the landscape of revenue mobilisation and collection in this country w*** be completely changed. KRA has also intensif*** its fight against *********** to ensure that no revenue is lost.
Meanwhile, 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 en***ies from January to December 2020, s**uld be submitted online on the iTax platform on or before 30 June 2021.
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