Economy
Tax receipts hit Sh152 billion in January
Friday February 17 2023
Taxpayers at KRA offices in Mombasa. FILE PHOTO | NMG
Tax receipts have grown by 5.6 percent to Sh152.1 billion in January, as the Kenya Revenue Authority continues diversifying its domestic revenue mobilisation channels, including automation.
The latest data from the National Treasury statement of actual revenues and net exchequer issues shows tax revenue grew from Sh142.8 billion in January 2022.
Cumulative tax receipts in the first seven months of the 2022/23 fiscal year now stand at Sh1.105 trillion, a 9.2 percent rise from Sh1.012 trillion in a similar period in the previous year.
Treasury expects KRA to collect Sh2.071 trillion in revenues by June this year, which leaves the taxman under pressure to raise Sh967.1 billion in the next five months. KRA requires an ambitious run rate of at least Sh193.4 billion a month to meet this target.
Last week data published by Treasury showed the tax agency is trailing its revenue collection target, inclusive of non-tax receipts, by Sh43.2 billion.
Ordinary revenue collection in the first six months of the 2022/23 financial year stood at Sh985 billion, below the Sh1.028 trillion target for the period.
Ordinary revenue represents netting from both tax and non-tax sources.
The shortfall was largely attributed to lower corporation tax, which missed the target by Sh18.1 billion.
Other tax heads were also off-target, including value-added tax (VAT), pay-as-you-earn (PAYE), excise duty, import duty, and investment revenue.
However, traffic revenue and taxes on international trade met their targets for the six months to December to stand at Sh2.2 billion and Sh27.4 billion, respectively.
The slump in ordinary revenues was, however, partly offset by a Sh31.9 billion overperformance in ministerial appropriations in aid (AiA), which stood at Sh162 billion.
