KRA misses target by Ksh.61B as Rotich prepares Ksh.2.7T budget speech
Treasury Cabinet Secretary Henry Rotich is expected to deliver his Ksh2.7 trillion budget in two weeks.
It has emerged that the Kenya Revenue Authority has missed its target by Ksh.61 billion.
KRA attributes this to depressed revenues are as a result of decrease in corporate tax contributions.
“The taxman was off their target again this time and the problem is not really known if its revenue collection or if its exaggerated targets, but reduction in corporate tax has also contributed to missing the mark,” said Francis Kamau, a partner at Ernst & Young LLP
However, Mr. Kamau indicated that the government might employ the services of Huduma Number to try and expand its tax bracket from the next financial year.
“Look at the elections, we have have 16 million registered voters, but only 3 million tax payers…with the use of Huduma Number the government can now be able to expand its tax bracket,” he added.
According to Ernst & Young, some of the challenges that the 2019/2020 budget experienced include an increased government expenditure, wastage and corruption, missed revenue targets and more foreign debt.
The financial advisory firm has stated that the country’s recurrent expenditure is on the higher side and that the government, both at national and county levels should find a way of harmonising staff to avoid replication of duties.
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