The Kenya Revenue Authority (KRA) surpassed targets in betting tax and excise tax on betting services collections by KShs. 16 million and KShs.50 million respectively in October.
- •This is due to the ongoing European major leagues for 2024/25 season (EPL, Laliga, Bundesliga and Ligue 1) among other sporting events which normally attracts more stakes from punters.
- •KRA’s October 2024 highlights however shows tax heads from PAYE, Domestic VAT, Excise Duty on money transfer, Excise Duty Domestic recording below target performance.
- •PAYE remittance from the private sector had a deficit of Ksh1.2 billion due to a reduction in average monthly cash pay per employee.
The average cash pay declined from KShs 78,034 in Jun-September 2023 down to KShs 75,781 in Jun-September 2024, pointing to effects of ongoing restructuring by various organisations to manage operational costs.
KRA says the Domestic VAT recorded a deficit of Ksh 2.4 billion with remittances from a number of sectors (administrative and Support, electricity, oil and gas, finance, professional and scientific, transport, and wholesale and retail trade) dropping by 26.3 per cent.
“These sectors account for about 33 per cent of normal domestic VAT in October 2024. Turnover sales from these sectors dropped by 14.7 per cent, while inputs had a growth of 0.5 per cent,” KRA says.
The excise duty on money transfer recorded a deficit of Ksh728 million attributed to a decline in remittance from banks by 10.6 per cent due to decreased transactions value.
Excise Duty Domestic registered a decline of Ksh573 million attributed to a decline in remittance from manufacturers of beer, bottled water, tobacco and soft drinks by 2.3 per cent, 7.9 per cent, 6.6 per cent and 12.2 per cent respectively. This is attributed to decline in deliveries of beer, Tobacco and Bottled water.
KRA Collects Sh135B More In FY 2022/23 – Kenyan Wall Street – Business, Markets & Finance Insights
