March tax receipts rise to Ksh.131 billion


March tax receipts rise to Ksh.131 billion
KRA offices in Nairobi's Times Tower. PHOTO | COURTESY

In Summary

  • In the same month in 2020, tax receipts stood at a lower Ksh.124.6 billion as the storm of the COVID-19 pandemic on the economy brewed.
  • KRA has the difficult task of collecting at least Ksh.144 billion monthly between now and the end of June to hit its prescribed Ksh.1.47 trillion target.
  • The tax man is tasked with closing in on the collections target against reimposed tough restrictions to contain the COVID-19 pandemic including the severed operations of bar and restaurants in five key Counties.
 

The Kenya Revenue Authority (KRA) has recorded a back-to-back monthly tax revenue growth with receipts in March coming it at a higher Ksh.131 billion from last year.

The 5.1 per cent growth in the collections revealed in data posted in the National Treasury statement of actual revenues and net exchequer issues published on Friday mirrors a strengthened revenue base in recent months.

In the same month in 2020, tax receipts stood at a lower Ksh.124.6 billion as the storm of the COVID-19 pandemic on the economy brewed.

Last month, KRA posted a notable 24.2 per cent growth in revenue collected to Ksh.121.3 billion from Ksh.97.7 billion in February 2020.

Cumulatively, tax receipts through the 2020/21 fiscal year to March 31 now stand at Ksh.1.037 trillion or Ksh.432 billion shy of the target set for June 30.

This means that the KRA has the difficult task of collecting at least Ksh.144 billion monthly between now and the end of June to hit its prescribed Ksh.1.47 trillion target.

The tax man is tasked with closing in on the collections target against re-imposed tough restrictions to contain the COVID-19 pandemic including the severed operations of bar and restaurants in five key Counties.

KRA’s target has however been softened from a higher Ksh.1.568 trillion by the National Treasury through amendments covered by the first 2020/21 first supplementary budget approved in Parliament last month.

Collections by the tax man came under sharp distress in April of last year as measures taken to combat the COVID-19 pandemic stalled enterprise alongside a haircut taken from tax relief measures effected between the same month and December 2020.

Cumulative non-tax revenues which represent earnings from penalties and other levies stood at Ksh.69.7 billion in the nine month period.

Combined, tax and non-tax revenues make up ordinary revenues which are estimated at Ksh.1.59 trillion.

Total Revenue to the end of June is meanwhile approximated at Ksh.1.849 trillion including Ministerial Appropriation in Aid (A-i-A) which is projected at Ksh.255.2 billion and is independently reported to the exchequer by individual ministries.

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Story By Kepha Muiruri
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