The Taxman report shows that revenue collection increased in the last tax year by KSh145 billion from a collection of Ksh1.435 trillion in 2017 to KSh. 1.58 trillion in 2018. This means a growth of 10% in for the year 2018/2019 as compared to a 5.1% growth in 2017/2018. However, the revenue authority missed its 1.605 trillion target by 25 billion. The authority attributed its failure to a decline in economic activities.
KRA has shown impressive growth in collections, with its revenues have more than doubled over the past ten years. Collections in the Financial year 2011/2012 amounted to Ksh. 707 billion whereas those of 2018/2019 stood at Ksh. 1.58 trillion. Tax collections witnessed a massive growth of 12% in the last tax quarter from a mean of 1.8% in the first three quarters as a result of growth in the banking sector. Bank’s performance in the country jumped from a decline of 7.9% in the first three quarters to 29.3% in the last quarter.
Other sectors which performed well include the Domestic Taxes Department largely alluded to rental income tax which advanced by 41.7%. At the same time, domestic VAT grew by 12.3%. The tax authority attributes its expansion in collections to the recently launched 7th Corporate plan themed “Revenue Mobilization through Transformation, Data-Driven decision-making and Tax Base expansion”.
The plan will be delivered through the integration of technologies like iTax and IFMIS to promote compliance at national and county level.
Related:
KRA goes after tax from online businesses
KRA improves the issuance of Tax Compliance Certificates
