Pay-as-you-Earn (PAYE) collections in public sector rose 29.5 per cent in the July-December period, overshadowing a marginal 2.4 growth in payroll revenue remitted by large corporates.
Growth in PAYE beat customs, domestic value-added tax and corporation taxes, which rose by 7.7, 7.5 and 7.2 per cent, respectively.
Capital gains tax, charged on net proceeds from the sale of land and buildings, rose the highest at 86.5 per cent, although they are coming off a lower base having been reintroduced in January 2015.
Payroll taxes shrugged off increased private sector job cuts and electoral politics to grow by 9.2 per cent in six months ended December, data shows.
The Kenya Revenue Authority (KRA) said without giving actual numbers that Pay-as-you-Earn (PAYE) collections in public sector rose 29.5 per cent in the July-December period, overshadowing a marginal 2.4 growth in payroll revenue remitted by large corporates.
“The new compliance programme focuses on education and compliance support interventions geared towards helping public enterprises better understand requirements,” KRA commissioner-general John Njiraini said in a statement.
Growth in PAYE beat customs, domestic value-added tax and corporation taxes, which rose by 7.7, 7.5 and 7.2 per cent, respectively.
Capital gains tax, charged on net proceeds from the sale of land and buildings, rose the highest at 86.5 per cent, although they are coming off a lower base having been reintroduced in January 2015.
Overall, the KRA collected Sh712.2 billion in the first half of the current financial year which ends in June, Sh62.5 billion or 9.6 per cent more than the same period a year earlier.
Exchequer revenue in the July-December period, characterised by reduced business activity due to elevated political tensions, rose by 10 per cent to Sh664.77 billion against a full year target of Sh1.44 billion.
The taxman said the growth in exchequer revenue, however, compared with a three-year average of 10.5 per cent, still fell below the Treasury’s targets.
“The prolongation according to knowledgeable business sources adversely affected business confidence and depressed consumer spending, leading to weak performance in consumption related taxes especially in the non-essential goods sectors including beverages,” said Mr Njiraini, whose term expires mid next month.
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