KRA commissioner general John Njiraini (left) and large taxpayers commissioner Pancracious Nyaga during a press briefing on October 7, 2013. SALATON NJAU
What you need to know:
KRA on Monday said that it collected Ksh228.4 billion in the first quarter of the 2013/14 fiscal year compared to a targeted Ksh224.8 billion.
The Kenya Revenue Authority (KRA) exceeded its overall target for the first quarter ended September 2013 after it collect more tax than budgeted from customs services and the large taxpayer’s office.
KRA on Monday said that it collected Ksh228.4 billion in the first quarter of the 2013/14 fiscal year compared to a targeted Ksh224.8 billion.
Customs services exceeded the target by Ksh1.9 billion after Ksh80.9 billion was collected against a target of Ksh79 billion while the large tax payer’s office collected Ksh101.3 billion, Ksh1.8 billion more than the targeted Ksh99.5 billion.
The medium tax payer’s office collected Ksh45.3 billion, meeting its target for the first quarter ended September while the road transport department collected Ksh0.9 billion, missing its target by Ksh0.1 billion.
All the departments recorded double digit growth in taxes collected despite slower than expected economic growth and higher than expected inflationary pressure.
The government is under pressure to find adequate revenues to fund promises made by the Jubilee government during the campaign period that ended after the March 4 general elections earlier this year.
It has already rolled out free maternity services, a Ksh6 billion fund that is supposed to provide interest free loans to persons under the age of 35 and is preparing to embark on plans to provide a free laptop to every child in the country who is joining standard one.
A raft of reforms has also been prepared for the police, irrigation and other infrastructural projects have been lined up while salaries of various groups like members of parliament have been reviewed upwards.
The country’s borrowing from the domestic market and from other commercial sources has been edging upwards although plans are underway to sell debt in the international markets, some of which will be used to retire already existing expensive obligations.
