The Kenya Revenue Authority (KRA) aims to collect Kes 2.8 trillion by June 2024 to enable the Kenya Kwanza government to achieve its ‘Bottom-up’ economic agenda.
The Authority wants to raise Kes 3 trillion in the 2024–25 financial year (FY).
“KRA is confident that it will achieve this target and enable the government to finance its Bottom-Up Economic Transformation Agenda (BETA) and sustain the country’s economy,” KRA said.
Since KRA needs to raise roughly Kes 400 billion during this fiscal year, raising taxes will be difficult.
KRA raised Kes 2.2 trillion in the most recent fiscal year, which concluded last month. This is an increase of 6.7% over the same time previous year.
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However, it intends to use tax administrative measures and reforms to increase taxes to meet the aforementioned goals.
“KRA will implement the National Tax Policy and the Medium-Term Revenue Strategy (MTRS) for the period FY 2023/24 – 2026/27. ISO 9001:2015 CERTIFIED PUBLIC KRA will also develop and implement its 9th Strategic Plan after the end of the 8 th Corporate Plan cycle in 2023/24.”
While KRA earned Kes 1.41 trillion in domestic taxes, the just-completed FY saw a customs income of Kes 754.1 billion.
Along with increasing by 116.2 per cent to Kes 6.64 billion from Kes 5.72 billion, gambling taxes also increased.
Corporation tax increased by 94.2 per cent to Kes 263.82 billion, while domestic value-added tax (VAT) increased to Kes 272.45 billion.
“P.A.Y.E registered a growth of 7.2% after collecting Kes 494.979 Billion,” KRA added.
The Authority attributed the growth to remittance from private firms and the public sector, which grew by 10.7% and 1.9%, respectively.
