Treasury cuts tax target again on hard economy

The Kenya Revenue Authority offices in Mombasa.

Photo credit: File | Nation Media Group

The National Treasury has lowered expectations on tax collections from earnings and consumption of goods and services, days to the end of the current financial year, signalling a slowdown in economic activity than earlier projected.

In the latest review, the Treasury has trimmed the targeted receipts from main tax streams — income tax, value-added tax (VAT), excise duty, and import duty — by an additional Sh90.80 billion compared with projections in February.

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Note: The results are not exact but very close to the actual.