Increase in VAT collection boosts KRA performance
15 July 2014, 17:33
Nairobi - Increase in Value Added Tax VAT collections has brought the increase in revenues collected by the taxman Kenya Revenue Authority.
KRA exceeded its tax-collection
target, KES 963.7 billion in the year ended June.
Commissioner General John Njiriaini said Tuesday that the growth was helped growth in revenue from customs duties and large and medium-size taxpayers.
" We saw a double digit growth in customs duties and companies thanks in large part to VAT, he said.
The agency said it collected a
total of KES 963.8 billion which is KES 100 million more than the previous year.
It was also a good performance by the taxman considering the revised lower target that was informed by a
weaker GDP outlook.
Njiriaini though says that there is more work to be done in the coming year thanks to increased expectations by government.
" Treasury has set a target of KES 1.1 trillion for this fiscal year, so it will be a tougher ask for us but we are ready, he said.
The overall budget stands at KES 1.7 trillion.
Njiriani says that the new target will be 16.4 per cent higher than what has been expected of them in the 12 months ended June, with improved
compliance to tax payments by Kenyans needed to achieve the target.
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