The Kenya Revenue Authority needs to meet its revenue collection target in the last three months to November 27 billion. This report comes when President William ruto is trying to weed out those evading to pay tax.
Taxes from these three significant streams, payroll, corporation, VAT, excise and import duty, came to around ksh 466.46 billion, which missed the target of Sh493.11 billion that the revenue collection body had set. The Treasury intends to raise tax revenue by ksh274.1 billion, to Sh2.19 trillion in the current financial year, which ends in June, while reducing borrowing.
President William ruto has been campaigning for the digitization of the tax collecting system efforts to nab those evading the paying of taxes. Despite missing the target, the taxman managed eight per cent more revenue than that collected in the previous quarter.
Ruto has instructed KRA to collect every shilling due regardless of the powers wielded by those owed money. His instance on everyone paying their fair share of the taxes has earned him the title zakayo, which is a biblical reference to a man who was a tax collector.
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According to Treasury data, despite growth over the same period last year, collection from all significant income tax categories underperformed targets in the 2nd quarter, which concluded in December.
Taxes on the financial gain made by companies, co-operatives, and trusts, which are paid quarterly, fell short of the goal by 8 per cent, or ksh10.15 billion, in the three months to December, totalling ksh122.90 billion.
VAT collections fell 5.74 per cent short of the Sh140.48 billion target, irrespective of the fact that now the KRA started a gradual implementation of digital electronic tax registers (ETRs) last November, ensuring the real-time transmission of sales data.
President William Ruto aims to increase tax collection to minimize external borrowing, which is suffocating the economy.in a previous interview, economist David Ndii said that Kenya's economy was on the verge of collapsing had the kenya kwanza government not taken over
