KRA collects 11 bln USD in taxes for 2013/2014
16 July 2014, 08:21
Nairobi - The Kenya Revenue Authority (KRA) collected 11 billion U.S. dollars in taxes for the 2013/2014 financial year, surpassing its target.
KRA Commissioner General John Njiraini told journalists in Nairobi that the figure represents a 20.4 percent increase compared to the 2012/2013 financial year.
"The double digit increase was driven by expanding revenue from the customs as well as the large taxpayers," Njiraini said.
"We achieved 99 percent of the target as a result of the strong macro economic performance of the country," he said.
Njiraini said custom taxes hit three billion dollars compared to the 2.5 billion dollars collected in the previous financial year.
"We have implemented measures to eliminate customs under, valuation for previously zero rated and exempted items," he said.
In addition, KRA collected 229 million dollars for the Railway Development levy from imports. The Commissioner General said Value Added Taxes (VAT) reforms are paying dividends.
"VAT contribution to total collection increased from 22.9 percent in the financial 2012/2013 to 24.2 percent in the 2013/ 2014 financial year," he said.
He added that the slowdown in government funds disbursement adversely affected withholding taxes, especially for the infrastructure sector. Early this year, KRA launched an on-line tax returns service.
"The initial teething problems have been largely addressed and the system stability has been restored," Njiraini said.
"We are planning for a nationwide rollout of the electronic taxes returns in order to increase the uptake of the technology," he said.
He noted that the introduction of the Excise Goods Management System (EGMS) has resulted in 38 percent increase in excise revenues in the last financial year.
"We want to complete the roll out of the production line tracking technology for the tobacco, wines and spirits industries, " he said.
KRA has set a target of collecting 11.45 billion dollars in tax revenues for the 2014/2015 financial year, which will be a 17.4 percent increase compared to the last financial year.
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