KRA Nears Annual Target Of It’s 2021/22

PHOTO|COURTESY

The Kenya Revenue Authority (KRA) netted a record Ksh.181.7 billion last month to edge closer to its 2021/22 full-year tax revenue target.

New data from the National Treasury Statement of Actual Revenues and Net Exchequer Issues shows tax receipts by KRA rose by a substantive 48.2 per cent from Ksh.122.6 billion in the same month last year.

The record growth in collections mirrors the recovery in economic prospects which has allowed the taxman to reap higher collections alongside its own efforts to enhance revenue mobilisation.

Cumulatively, KRA has collected Ksh.1.637 trillion through the first 11 months of the financial year to May 31 in contrast to a lower Ksh.1.313 trillion in May 2021.

The higher collections have left KRA ever closer to its annual tax revenue collection target which is set at Ksh.1.741 trillion by the National Treasury for the fiscal year to June 30.

With a collection of Ksh.103 billion this month, KRA will have met its collection target for the year.

In addition to the tax receipts, KRA has cumulatively collected Ksh.59.5 billion in non-tax revenues which include levies and penalties.

Based on the improving scope for revenue collection, the National Treasury raised KRA’s tax revenue targets marginally from the Ksh.1.707 trillion approved in the budget last June.

The target set for tax revenues by KRA represents about 53.1 per cent of total financing required to foot the 2021/2022 budget.

Additional financing covers Ksh.1.007 trillion in gross domestic borrowing and Ksh.433.2 billion in gross external loans and grants.

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