The National Treasury aims to increase revenue collection to raise Kes2.9 billion in the 2023/2024 Financial Year.
The Kenya Revenue Authority(KRA) targets revenue allocation through payroll, corporation, VAT, excise, and import duty.
Further, KRA is expected to collect Kes4 trillion over the medium-term budget statement for June 2027.
Speaking during the reading of 2023/2024 Financial Year Budget in Parliament on Thursday, the Treasury CS, Njuguna Ndungu, noted that the target is a Kes800 billion increase in revenue target which is a 17 per cent rise from the Kes2.1 trillion budget in the financial year 2022/2023.
“We will scale revenue collection by Kenya Revenue Authority to a target 4.0 trillion over a medium term,” Njuguna told MPs.
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The Ministry of Treasury is set to undertake a combination of administrative tax measures, and policy reforms hinged on tax policy framework by the government.
The KRA is expected to invest in an automated system integrated with business to ensure no leakage and real-time monitoring.
“This will allow automatic movement of data and shift to real-time process. This will help seal revenue leakage through tax avoidance and evasion,” said Njuguna.
KRA had only managed to collect Kes 1.55 trillion, below the target set to finance Kes 3.3 trillion as of 31st March this year.
The government targets raising revenue collection amid tough economic challenges caused by the Ukraine-Russia conflict, drought, and inflation.
Revenue collection by the end of November last year recorded a shortfall of Kes19.1 billion, presenting a major task for the National Treasury and the Kenya Revenue Authority (KRA) to close the gap.
According to the Latest Economic and Fiscal review by the National Treasury, total revenues by the end of November 2022 amounted to Kes893.8 billion (6.4 per cent of GDP) against a target of Kes 912.9 billion (6.5 per cent of GDP).
