The Kenya Revenue Authority’s revenue collection for January topped its target by 102.6%, collecting Ksh 142 billion against KSh 138 billion.
KRA attributes the revenue growth to an improvement in the economy, and the relaxation of COVID-19 containment measures, such as reversal of tax measures set to cushion individuals and businesses from the effects of the COVID-19.
Collections from the Customs and Border Control (C&BC) department collected Ksh 54.919 billion. This is thanks to a higher daily average in non-oil revenues, which surged to Ksh 1.727 billion from Ksh 1.744 billion. Simultaneously, exemptions and custom remissions fell by 4.8%, improving revenues by 283 million. In December 2020, the tax agency collected Ksh 60.777 billion through its C&BC department.
Domestic taxes improved by 6%, at a performance of 97.1% compared to 91.1% in December 2020. Excise duty grew by 42.8%, collecting Ksh 3.422 billion while withholding tax surpassed its target by Ksh 386 million, an 8.2% growth.
PAYE recorded a 98.6 performance, still recovering from the reduction from 30% to 25% and 100% remission for personal income below Kshs 24,000 per month.
The corporate tax revenues increased by 44.4%, exceeding their monthly target by 19.4%, compared to a 6.5% shortfall in December 2020.
VAT Remittances grew by 8.5%, compared to a 19.8% decline in December 2020, expected to grow further as businesses convert purchases into sells,
KRA is optimistic that the 6.4% economic growth forecast will boost revenues. Meanwhile, the tax agency will ramp up enforcement efforts on the digital tax, minimum tax, and voluntary tax disclosure program.
SEE ALSO: KRA’s December Revenue Collection Exceeds Target by KSh 2 Billion
