Kenya Revenue Authority (KRA) collected KSh 144.6 Billion, surpassing the March 2021 revenue target by KSh 6 Billion, a performance rate of 105.1%
This 11.2% revenue growth is the highest since the beginning of the 2020/21 financial year. In February 2021, KRA collected KSh 127.7 Billion.
Reasons for KRA improved collections
KRA attributes the improved revenue performance to sustained implementation of compliance efforts, revenue enhancement initiatives and improved service delivery to taxpayers.
Customs & Border Control collections hit KSh 60.751 Billion compared to KSh 51.3 Billion in February 2021.
Domestic Taxes collections hit KSh 83.378 Billion in March due to Corporation Tax which registered a decline of 35.2%, driven by a significant decline of 62.8% in the ICT sector.
PAYE registered improved performance of KSh 34.595 Billion, a surplus of KSh 3.339 Billion.
Withholding Tax registered revenue of KSh 9.418 Billion while Domestic Excise Duty recorded a with a collection of 61.9% or KSh 4.521 Billion.
Domestic Value Added Tax (VAT) collections amounted to KSh 17.017 billion, a performance rate of 81.3%.
The tax authority is revamping the audit function, tax base expansion and enhanced debt programme, implementing post-clearance audits, comprehensive audit of all exemptions, enhanced scanning and intelligence-led verification of cargo at all ports of entry.
The Authority has also intensified its fight against tax evasion to ensure that no revenue is lost.
It has noticed that all annual tax returns for both individuals and entities from January to December 2020 should be submitted online on the iTax platform on or before 30 June 2021.
The tax agency is expected to collect KSh 1,721,639 Million in core revenues, a 7.1% growth of the revenue collected in the 2019/2020 financial year of KSh 1,606,865 Million.
ALSO READ: KRA Surpasses January Revenue Target by Ksh 3.53 B
