KRA exceeds its revenue target by Sh149bn

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KRA commissioner-general Githii Mburu. PHOTO | DIANA NGILA | NMG

The Kenya Revenue Authority (KRA) exceeded its revenue collection target by Sh148.9 billion in the fiscal year ended June 2022, boosted by higher collections in corporate, payroll and value-added taxes in the period.

The tax agency said in a statement Thursday that it raised Sh2.031 trillion against an original target of Sh1.882 trillion, which was revised upwards twice during the year to Sh1.91 trillion and Sh1.98 trillion.

In the previous year (2020/2021), revenue collection stood at Sh1.669 trillion.

This is the first time taxman has surpassed its original target in 14 years after the previous target revisions were adjusted downwards.

“The outstanding performance consistent with the prevailing economic indicators, especially the projected GDP growth of 5.9 percentin 2021/22 fiscal year compared to a growth of 2.9 percentin 2020/21,” said the KRA.

“The performance is further anchored on the ongoing transformation at the Authority including the implementation of a high performance culture with stringent performance accountability as well as strict enforcement of tax laws in the fight against tax evasion.”

The taxman said that corporation tax collection rose by 32.7 percent to Sh242 billionagainst a target Sh218.2 billion, driven by increased remittance from finance and insurance, manufacturing, trade and transport sectors.

Pay as You Earn (PAYE) or payroll taxes returned Sh461.8 billionagainst a target of Sh455.1 billion on the back of the gradual recovery of the job market, while domestic VAT collections were up by 24 percent to Sh244.7 billion on enhanced compliance efforts by KRA and the recovery of the economy which boosted purchasing power.

The KRA has recently enhanced collection efforts by among other things deploying more than 500 officers to gather intelligence on tax evaders and utilising data to track non-payment of taxes on income by businesses.

The agency has also rolled out a voluntary tax disclosure programme which commenced in January 2021, and which realised Sh8.55 billionin taxes from 17,038 applications in the 2021/2022 fiscal year.

ALSO READ: KRA to exceed tax target by record Sh140bn revenue

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