KRA raked in nearly Sh753.32 billion in total tax in the period compared with Sh687.39 billion a year earlier, latest exchequer receipts released by Treasury secretary Henry Rotich indicate.
Taxes collected in the first seven months of the current financial year ending in June rose by Sh65.93 billion compared to the previous year but fell short of target, fresh Treasury statistics show.
The Kenya Revenue Authority raked in nearly Sh753.32 billion in total tax in the period compared with Sh687.39 billion a year earlier, latest exchequer receipts released by Treasury secretary Henry Rotich indicate.
The KRA will have to collect Sh686.68 billion between February and June to meet a revised full-year target of Sh1.44 trillion. Non-tax income, however, dipped Sh4.37 billion, or 13.38 per cent, to Sh28.29 billion. The Treasury has budgeted for Sh50.37 billion in non-tax funds for the year.
Collections usually rise as the fiscal year draws to a close as taxpayers rush to meet obligations to avoid penalties and accruing interest. The Treasury has struggled to get the tax and non-tax income — which are technically referred to as ordinary revenue — that were budgeted for.
The shortfall in revenue last September forced the Treasury to cut full-year spending on development by Sh37.43 billion to Sh351.95 billion, and increase domestic debt target by Sh64.76 billion to Sh531.44 billion to meet cash demand from ministries, departments and agencies.
Ordinary revenue between July last year and January reached nearly Sh781.61 billion, a growth of Sh94.21 billion compared with a year earlier.
The shortfall in the seven months is not yet clear because this data is not usually released in the monthly Statement of Actual Revenue and Net Exchequer Issues.
For the half-year period through last December, the tax and non-tax revenue increased by Sh34.44 billion to Sh656.9 billion, but fell short of target by Sh44.8 billion, Mr Rotich disclosed in the Post-Election Economic and Fiscal report on Tuesday.
He blamed the underperformance on political uncertainty due to last year’s electioneering period, adverse weather and the cap on loan charges which slowed investment, thus hurting most sectors.
“FY (full-year) 2017/18 budget projection has been reviewed to reflect revenue performance by end December 2017 and to take into account expenditure rationalisation necessitated by the accommodation of the emerging priorities and salary and election related expenditure pressure,” Mr Rotich said in the report.
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