Kenya Revenue Authority (KRA) surpassed its revenue performance in the first half of the Financial Year 2021/2022 after collecting Sh976.659 billion against a target of Sh929.127 billion, a surplus of KSh 47.6 Million. This performance is for the period between July and December 2021.
The tax Authority attributes this improved performance to increased tax compliance and an economy that is slowly recovering from a slump due to COVID-19 pandemic effects. A relaxation of travel restrictions and lockdowns during this period saw most business re-open or operate on a 24-hour basis.
Collections from Customs improved due to 25.4% increase in trade taxes and 9.6% growth in petroleum taxes.
Trade taxes collected was KSh233.165billion against a target of KSh208.411 billion, a surplus of KSh 24.754billion while petroleum taxes amounted to KSh122.623billion against a target of KSh114.326billion, a surplus of KSh8.296billion.
KRA Domestic Tax Collection boosted by an economy on recovery
Domestic tax collection improved by 30.8 per cent growth to KSh618.312billion against a target of KSh603.870billion.
Pay As You Earn (P.A.YE) registered a 105.7 per cent rise to KSh221.328billion against a target of KSh209.339billion.
“The performance was mainly driven by gradual growth in employment and the emanating economic recovery,” KRA said in a statement.
Value Added Tax (VAT) collections amounted to KSh121.044billion against a target of KSh119.543billion, a 40.2 per cent growth while corporation tax collection grew by 17.3 per cent to KSh107.407billion.
KRA surpassed both the overall and exchequer targets in December 2021 by KSh10.152billion and KSh8.257billion respectively.