Tax collection up by 32.6 billion shillings in April

Economy

Tax collection up by 32.6 billion shillings in April


Kenya Revenue Authority Headquarters at Times Tower in Nairobi. FILE PHOTO | NMG

The Kenya Revenue Authority (KRA) collected 32.6 billion shillings or 22.63% more taxes and levies in April compared to a year ago, thanks to increased compliance and debt collection initiatives .

Last month’s revenue was 176.66 billion shillings compared to 144.06 billion shillings in April 2020. The tax authorities said the period was marked by a gradual economic recovery compared to the same month last year.

Collections – taxes and agency fees and levies such as the road maintenance tax and the Petroleum Development Fund – exceeded the revised target of 170.19 billion shillings for April by 3.8 percent.

This marked the fifth consecutive month the KRA has surpassed its monthly targets.

In April, President Uhuru Kenyatta restricted movement in and out of the five key counties (including Nairobi) and extended the nighttime curfew to two hours from 8 p.m. and ordered the closure bars, churches and in-person meetings to stem the third wave of Covid-19 Infections.

However, the measures were less devastating than in April last year, when the nighttime curfew was longer, from 7 p.m. to 4 a.m., when schools, bars and restaurants were completely closed.

The KRA attributed the performance to “the continued implementation of compliance efforts, revenue improvement initiatives and improved service delivery to taxpayers, which has led to better voluntary compliance.”

“In addition, the performance is also attributed to enhanced active monitoring and enforcement, which has been supported by the KRA’s investment in technology,” Commissioner General Githii Mburu said in a statement on Monday.

The collection of tariffs – largely taxes on imports and exports – surpassed the target for the fifth consecutive month, exceeding the target of 48.15 billion shillings in April by 12.1 percent to 54 billion shillings.

Domestic taxes – income, excise duties and value added tax – amounted to 122.24 billion shillings, slightly exceeding the target of 121.62 billion shillings due to the increase in quarterly payments on corporate income.

Corporate taxes, the first installment of which for most businesses is due on April 20, topped the April target by 16.9 percent to 39.95 billion shillings, while payroll taxes missed l target of 1.5% to 36.95 billion shillings.

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