January tax receipts down 6pc at Ksh.111.3B
Tax receipts across the month of January fell by six per cent to stand at Ksh.111.3 billion from Ksh.118.3 billion last year.
This is according to new data from the National Treasury statement of actual revenues and net exchequer issues as of January 31, 2021 which was published on Friday.
While the receipts on taxes continue to show weakness, the slack in revenues has for the first time fallen below double digits. This to indicate a reversing trends where tax revenues are on the rise from significant declines registered following the advent of the COVID-19 pandemic.
The continued ease of measures to contain the COVID-19 pandemic to include the re-opening of learning institutions at the start of the year.
Cumulatively, tax revenues in seven months to January stand at Ksh.784.9 billion from a higher Ksh.897.7 billion at the same time last year.
Meanwhile, non-tax receipts which complies of other levies and penalties also continue trailing 2020 levels cumulatively standing at Ksh.52.9 billion from Ksh.78.5 billion at the same time in 2019.
Combined ordinary revenue which comprises of streams from tax and non-tax revenues are projected at Ksh.1.594 trillion by the close of June this year.
This means that the Kenya Revenue Authority (KRA) has just five months to raise the balance of Ksh.754 billion which tally’s to average ordinary revenue receipts of Ksh.150.8 billion every month.
KRA’s revenue raising efforts are however set to see further boost from the introduction of new taxes at the start of the year including the digital services tax (DST) charged at the rate of 1.5 per cent to service providers at the digital market place and minimum tax.
In the next financial year commencing on July 1, 2021, the taxman will be tasked with raising Ksh.1.78 trillion in ordinary revenues.
Total revenues including ministerial appropriations in aid (A-i-A) are meanwhile projected at Ksh.2.03 trillion according to 2021/22 final budget estimates published at the end of last week by the National Treasury.