Kenya Revenue Authority (KRA) is seeking a budget allocation of KES 12 billion in the upcoming fiscal year to support its technology-driven revenue mobilisation plan alone.
The amount is expected to be regularised through the 2023 Budget Policy Statement (BPS), which will determine the final estimates for the Authority if the request gets the nod of the budget office.
KRA’s 12 billion demand will push up the National Treasury’s budget ceiling from KES 130 billion, which was indicated in the draft budget.
The government charged the taxman with a target of raising KES 3.09 trillion in the FY 2023/24, up from KES 2.538 trillion in this current financial year. However, KRA argued that it faces the colossal task of meeting the hiked tax collection targets if it is not equipped financially to deliver
“We are giving KRA much higher targets but they still have, for example, old scanners at the airport. The amount is for us to capture new people and to increase tax compliance,” said Kuria Kimani, who chairs the department committee on finance and national planning as quoted by People Daily.
To meet the collection target, the taxman will be expected to revamp the infrastructure at the ports and borders by replacing obsolete scanners to boost customs revenues. It will also expand the networks of customs border points by establishing and operationalizing other One-Stop Border Posts (OSBP) to ease the movement of goods and boost collections.
KRA currently has about 7 OSBP at the borders of Busia, Moyale, Namanga, Taveta/Holili, Lunga Lunga, Malaba, and Isebania.
Read also; KRA to Monitor Beer, Petrol, and Airtime Sales in Real-Time.
