KRA Bounces Back With Historical Tax Collection

Kenya Revenue Authority (KRA) has signaled a speedy economic recovery after surpassing December 2020 tax targets by over Ksh2 billion.A statement seen by  Kenyans.co.ke showed that the taxman collected Ksh166 billion against a target of Ksh164 billion recording a performance rate of 101.3 percent.The document further indicated that KRA made history in the Customs and Border Control Department which collected a total of Ksh60.8 billion, its highest ever.KRA Commissioner General Githii Mburu disclosed that the milestone was the first-ever positive deviation the authority had recorded since the pandemic hit the country in March 2020. KRA Boss James Githii Mburu gives an address during a past eventTwitter “This was the first positive and above target collection rate since the outbreak of Covid-19 pandemic.”The improved performance is attributed to the economic recovery following the relaxation of the stringent Covid-19 containment measures and enhanced compliance efforts by KRA in December.” stated Mburu.The Customs Department, with the historical collection, realised a 41 percent growth with a surplus of Ksh12.2 billion in targeted revenue.“This resulted in a cumulative surplus for customs revenue of Sh3.8 billion at the end of December 2020, compared to a deficit of Sh8.4 billion as at the end of November 2020,” continued Mburu.The performance was largely attributed to the relaxation of tax measures that had been put in place by President Uhuru Kenyatta to cushion Kenyans from the effects of Covid-19 pandemic.Withholding tax crossed target by as much as Ksh725 million while corporate taxes missed the target by more than 6 percent.In 2021, the taxman is expected to increase the revenue collected after the taxation measures including VAT and PAYE were restored beginning January 1.Other taxes such as turnover and digital are also expected to boost the authority’s revenue. Times Towers in Nairobi which houses Kenya Revenue Authority’s head office. Thursday, February 20, 2020Simon KiraguKenyans.co.ke