The Kenya Revenue Authority (KRA) has recorded a 10.2 per cent growth in revenue collection for the first five months of the current financial year, driven by new tax measures and positive economic recovery.
National Treasury data shows KRA netted KES 758.58 billion in tax revenue for the five months to November, an increase from the KES 688.08 billion tax revenue it collected in the same period last year.
The Treasury introduced a raft of new tax measures in July through the Finance Act 2022, including an increment of excise duty on products such as fruit juices, cosmetics, beer, wines, spirits, and cigarettes.
KRA collected a record KES 2.031 trillion in revenues for the financial year 2021/22, up from the KES 1.669 trillion it collected in the previous year.
This year, KRA has been given a target to collect KES 997.34 billion in taxes on income, profits, and capital gains, KES 1.04 trillion in taxes on goods and services, and KES 215.08 billion on taxes on international trade and transactions.
It also seeks to collect KES 37.64 billion in property income, KES 140.09 billion through the sale of goods and services, and KES 187.61 billion in other revenue to fund this year’s KES 3.3 trillion budget and reduce the budget deficit to lessen pressure for borrowing.
However, KRA will be sweating on the prevailing high unemployment, downturn in business activities, and muted demand for goods and services amid high inflation that could derail it from achieving those targets.
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