KRA tax collections in October down 14.7 per cent at Ksh.108.7B
The Kenya Revenue Authority (KRA) has seen its strife in revenue collection extend into October with grossed taxed during the month falling by 14.7 per cent to Ksh.108.7 billion.
This from Ksh.125.98 billion at the same time last year as the COVID-19 pandemic continues to tear apart revenue mobilization efforts.
Cumulatively, ordinary revenues to include non-tax income reached Ksh.115.7 billion after Ksh.7 billion in grossed non-tax income but remained shy of the Ksh.129.6 billion collected last October.
Economic disruptions arising from the COVID-19 pandemic have continued to deny the tax man steady revenue streams as further mirrored in KRA’s revenue outturn in three months to September.
According to data from the first quarterly budget review by the National Treasury published last week, KRA mixed its three months collection target by Ksh.41.7 billion having raised Ksh.342.6 billion in taxes to September against a Ksh.383.3 billion target.
Value added tax (VAT) was the highest hit tax head declining by 30.8 per cent in the period to Ksh.41.2 billion on the back of the reduction of the VAT rate to 14 per cent earlier in the year which represented government cushioning to Kenyans.
Corporation tax collected in the period however defied the general slack to grow by Ksh.3.1 billion in the period to Ksh.79.7 billion.
The persistent revenue decline has since prompted the National Treasury to set down its projections for KRA in the financial year to June 2021.
KRA is now expected to collect a combined Ksh.1.633 trillion in the year to June to include Ksh.1.567 trillion in pure tax revenues.