Mkikuyu- Akili timamu
JF-Expert Member
- Feb 16, 2018
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Juzi niliandika uzi kuhusu kukosa uzalendo kwa wakenya..Nikawasihi watumie SGR ya mchina sababu "middle income" hamfai kuwa mna andamana eti SGR bei ghali.
Sikujua hata Kodi za serikali bado mnasusia!..Uzalendo upo wapi? Kazi ni kujaza mitandao shobo na kujipiga vifua
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The Kenya Revenue Authority’s (KRA) poor run in domestic revenue mobilization has continued into the new financial year indicating the tax man’s struggle to attain optimum tax collection.
According to disclosures from the National Treasury statement of actual revenues and net exchequer issues which are published on the Kenyan gazette, tax income for government dropped by 32.4 percent between July and September from Ksh.632.9 billion over a similar period in 2018.
Month over month, new taxes fell at their sharpest in September as collected revenues shrunk to Ksh.98.9 billion from Ksh.329.1 billion in September 2018.
The declining tax base is largely attributable to the continued deplorable macroeconomic environment whose incapacitation has locked out key revenues for government.
A mark down in tax compliance coupled with reduced company investments saw KRA miss out on its expected Ksh.1.77 trillion in revenue collection in the past year by 11 percent in spite of notable spike in collections to Ksh.1.58 trillion.
Further, the widening of employee tax bands had the opposite effect of containing the Pay As You Earn (PAYE) taxes as the segment’s revenue base shrunk by Ksh.6.1 billion.
Moreover, the de-coupling of the Kenyan economy towards lesser revenue yielding segments such as agriculture continues to pose a significant stranglehold on greater collections as automation in the more discerning tax bases such as finance and manufacturing seals off greater collections.
“Sectors where we traditionally get a lot of revenues are showing weaknesses while on the vice versa, lesser yielding segments have become dominant,” said KRA’s Deputy Commissioner for Innovation and Risk Management Joseline Ogai in August.
The falling tax base has presented the largest doubt to Kenya’s fiscal containment among multi-lateral lenders such as the World Bank as the accumulation of public debt remains on forward footing.
The declining taxes for instance saw the International Monetary Fund (IMF) raise Kenya’s debt distress profile from low to medium in October 2018 on the back of years of persistent misses in revenue mobilisation by government.
According to World Bank’s Chief Economist for Kenya Peter Chacha, the shift in tax contributory segments remains the key ongoing concern to the assessment of Kenya’s distress levels.
“There has been a disconnect in revenue mobilization with a decline in the growth of tax to GDP. We have seen the decoupling of the structure of the economy with a shift of growth towards lower contributory segments such as agriculture,” Mr. Chacha said in an interview earlier this month.
KRA however hopes to clap back on missed revenue targets going forward through improved tax compliance to include greater surveillance of tax payers.
The improved surveillance is anchored on innovation with the tax man sinking to sync tax payers’ information with third party data bases such as Kenya Power and mobile money services.
Additionally, KRA has stepped up its pursuit of tax cheats as mirrored by the consistent indictments of tax evaders and their subsequent prosecutions.
The tax man hopes to prosecute an estimated 600 individuals on tax evasion by the end of June 2020 having indicted 222 persons in the past year to see a 60 percent surge in tax recoveries to Ksh.8.5 billion.
KRA is expected to pull up its socks in the nine months to the end of the current fiscal year with Treasury having pushed up the agency’s revenue targets to Ksh.1.81 trillion.
Source: KRA tax collections fall by 32 percent in first quarter - Citizentv.co.ke
Sikujua hata Kodi za serikali bado mnasusia!..Uzalendo upo wapi? Kazi ni kujaza mitandao shobo na kujipiga vifua
----
The Kenya Revenue Authority’s (KRA) poor run in domestic revenue mobilization has continued into the new financial year indicating the tax man’s struggle to attain optimum tax collection.
According to disclosures from the National Treasury statement of actual revenues and net exchequer issues which are published on the Kenyan gazette, tax income for government dropped by 32.4 percent between July and September from Ksh.632.9 billion over a similar period in 2018.
Month over month, new taxes fell at their sharpest in September as collected revenues shrunk to Ksh.98.9 billion from Ksh.329.1 billion in September 2018.
The declining tax base is largely attributable to the continued deplorable macroeconomic environment whose incapacitation has locked out key revenues for government.
A mark down in tax compliance coupled with reduced company investments saw KRA miss out on its expected Ksh.1.77 trillion in revenue collection in the past year by 11 percent in spite of notable spike in collections to Ksh.1.58 trillion.
Further, the widening of employee tax bands had the opposite effect of containing the Pay As You Earn (PAYE) taxes as the segment’s revenue base shrunk by Ksh.6.1 billion.
Moreover, the de-coupling of the Kenyan economy towards lesser revenue yielding segments such as agriculture continues to pose a significant stranglehold on greater collections as automation in the more discerning tax bases such as finance and manufacturing seals off greater collections.
“Sectors where we traditionally get a lot of revenues are showing weaknesses while on the vice versa, lesser yielding segments have become dominant,” said KRA’s Deputy Commissioner for Innovation and Risk Management Joseline Ogai in August.
The falling tax base has presented the largest doubt to Kenya’s fiscal containment among multi-lateral lenders such as the World Bank as the accumulation of public debt remains on forward footing.
The declining taxes for instance saw the International Monetary Fund (IMF) raise Kenya’s debt distress profile from low to medium in October 2018 on the back of years of persistent misses in revenue mobilisation by government.
According to World Bank’s Chief Economist for Kenya Peter Chacha, the shift in tax contributory segments remains the key ongoing concern to the assessment of Kenya’s distress levels.
“There has been a disconnect in revenue mobilization with a decline in the growth of tax to GDP. We have seen the decoupling of the structure of the economy with a shift of growth towards lower contributory segments such as agriculture,” Mr. Chacha said in an interview earlier this month.
KRA however hopes to clap back on missed revenue targets going forward through improved tax compliance to include greater surveillance of tax payers.
The improved surveillance is anchored on innovation with the tax man sinking to sync tax payers’ information with third party data bases such as Kenya Power and mobile money services.
Additionally, KRA has stepped up its pursuit of tax cheats as mirrored by the consistent indictments of tax evaders and their subsequent prosecutions.
The tax man hopes to prosecute an estimated 600 individuals on tax evasion by the end of June 2020 having indicted 222 persons in the past year to see a 60 percent surge in tax recoveries to Ksh.8.5 billion.
KRA is expected to pull up its socks in the nine months to the end of the current fiscal year with Treasury having pushed up the agency’s revenue targets to Ksh.1.81 trillion.
Source: KRA tax collections fall by 32 percent in first quarter - Citizentv.co.ke
