July tax collections improve by 29pc to Ksh.121.8 billion

July tax collections improve by 29pc to Ksh.121.8 billion

The Kenya Revenue Authority (KRA) has seen its rebound in tax revenue collections continue into the new financial year booking tax revenues of Ksh.121.8 billion at the end of July. This to represent a 28.9 per cent rise in returns for the revenue agency from a lower Ksh.94.5 billion last July according to new data from the National Treasury released on Friday. The statements of actual revenues and net exchequer issues reveal the continued recovery of revenue mobilization following the initial disruption of the COVID-19 pandemic at the end of March 2020. Meanwhile, non-tax revenues in the first month of the 2021/22 fiscal year stand at Ksh.348.9 million against a higher Ksh.1.4 billion last year. In the full year to June, total collections by KRA stood at Ksh.1.562 trillion with the tax man coming close to hitting the prescribed ceiling by missing the mark by just Ksh.16.8 billion. This represented a performance rate of 98.9 per cent for the collection agency, bettering a score of 97.4 per cent in the prior year. Tax revenues have improved significantly in the first seven months of the 2021 calendar year after sinking significantly in months of November, December and January. The recovery has been anchored greatly on the partial reopening of the economy alongside new tax measures such as the digital services tax (DST). Subsequent to the improved revenue prospects, KRA has seen its tax revenue target raised to Ksh.1.71 trillion for the financial year ending in June 2022 from a lower target of Ksh.1.579 trillion for the just concluded period.

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