KRA targets extra Sh282bn from large taxpayers' pool

DNKRA2211vr
DNKRA2211vr

The Kenya Revenue Authority (KRA) is targeting an extra Sh282 billion in revenue collection from large taxpayers this year on simplified processes.

KRA commissioner-general Humphrey Wattanga says the taxman projects to collect Sh1.1 trillion from this group of taxpayers in 2023/2024 up from Sh818 billion previously.

“At KRA, our commitment is not only to collect taxes but also to support you in upholding compliance, while efficiently contributing to our nation's economic agenda," he said.

"To facilitate this, we have established a dedicated office for our large taxpayers known as the Large Taxpayers Office (LTO), which will continue to engage and partner with you through a relationship management framework”.

Large taxpayers have an annual income of Sh1.3 billion and the tax agency says there are 2,089 registered large taxpayers.

Mr Wattanga said the KRA has adopted a personalised tax compliance system to maximise collection.

The KRA remains under pressure to grow its collections amid the slow performance of key sectors such as manufacturing.

For instance, tax collections for the first quarter of the current financial year increased at the slowest pace since 2018, excluding the Covid-19 pandemic year, despite the enforcement of new taxation measures by the William Ruto administration.

The Treasury says the taxman collected Sh514.26 billion in revenue in the three months through September, representing a 10.55 percent growth of nearly Sh465.20 billion in a similar period a year earlier when taxes increased by 11.60 percent.

Analysis showed that the rate of growth was the slowest in five years excluding the pandemic year (2020/21) when the Treasury gave tax reliefs in the first half.

The increment in the first quarter of the 2021/22 fiscal year was 31.21 percent to Sh416.82 billion, largely on the low base effect the previous year when the collections dipped 14.68 percent on tax reliefs tied to Covid-19.

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