KRA is set to be under pressure to improve its collections as the new government administration prioritises domestic revenue mobilisation to plug the budget deficit.
The agency is expected to collect at least KES 173 billion per month to meet its KES 2.071 trillion target this fiscal year.
The Statement of Actual Revenues and Net Exchequer Issues by the National Treasury for the period to September 30 shows KRA collected KES 465.2 billion against a quarterly target of KES 517.5 billion, 11.6 % higher compared to KES 416.8 billion collected similar period last year.
In September alone, the tax agency collected KES 185 billion, representing a 9.1 per cent year-over-year growth in collections from KES 169.6 billion in September 2021.
The rise in tax collections is attributable to improved economic conditions following the lifting of Covid-19 restrictions at the back end of last year, alongside improved efficiency in collections by KRA.
In addition to the tax settings, KRA collected KES 20.2 billion in non-tax revenues which present nettings from fines and other levies on taxpayers.
The taxman has been betting on digitisation and improved compliance from taxpayers to raise nettings from taxes through introduction of the Tax Invoice Management System (TIMS).
The taxman expects to enlist a further one million persons this year to lift the number of taxpayers registered on the i-Tax system to 7.1 million as of June 2023.
Read also; KRA Extends Deadline to Comply with the Tax Invoice Management System to 30th November.
