Tax collections in October up 21.1% to Ksh.131.6 billion

Rice importer gets away with Ksh.516 million in tax dispute with KRA

Cumulative tax in October 2021 grew 21.1 percent to Ksh.131.6 billion from Ksh.108.7 billion collected at the same time last year.

Non-tax revenues trailed last year’s total of Ksh.7 billion unlike Ksh.3.5 billion for October this year.

The rise in tax receipts mirrors the continued recovery of tax collected by the Kenya Revenue Authority (KRA) following initial disruptions from the COVID-19 pandemic.

This is according to data from the statement of actual revenues and net exchequer issues as of October 29 which were published in the Kenya gazette on Friday.

Cumulatively, tax revenues through the first four months of the 2021-2022 fiscal year stand at Ksh.548.4 billion in contrast to Ksh.426.4 billion in the same period last year.

In three months since the onset of fiscal year, total tax jumped by 31.2 percent to Ksh.416.8 billion compared to Ksh.317.7 billion recorded same time last year.

The gradual re-opening of the domestic economy from initial tough restrictions which restricted enterprise activity is credited with the bounce in tax receipts this year.

Collections this month are set to see a further boost from the recent lifting of the night time curfew which now allows businesses to operate within their pre-pandemic working hours.

SMS Alert 20146
SMS Alert 20146

In the year running to June 30, 2022, the tax man is tasked with raising Ksh.1.707 trillion in taxes to meet government spending in the fiscal period.

However, Treasury Cabinet Secretary Ukur Yatani has already warned that the country’s road to economic recovery still hangs in the balance due to uncertainty around the COVID-19 virus.

On the domestic front, the prospects for Kenya’s economic recovery will center on the progress of the vaccination effort, macroeconomic stability and implementation of the projects under the “big four plan.”

“We remain hopeful that our economy will rebound to above 6.0 percent over the medium-term from a growth of 0.6% in 2020,” said CS Yatani.

Yatani spoke during the launch of the financial year 2022/23 and medium-term budget preparation process.

Over 3 million bank
Isuzu inks Ksh.300 m

Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

Rate This Article: