Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
KRA Commissioner General John Njiraini said the growth was seen in the first half of 2012/13 financial year despite a challenging operating environment/FILE

Kenya

KRA’s revenue basket grows by 12.6pc

KRA Commissioner General John Njiraini said the growth was seen in the first half of 2012/13 financial year despite a challenging operating environment/FILE

KRA Commissioner General John Njiraini said the growth was seen in the first half of 2012/13 financial year despite a challenging operating environment/FILE

NAIROBI, Kenya, Jan 14 -The Kenya Revenue Authority has announced a 12.6 percent growth in revenue collection between July to December 2012 to Sh380.6 billion from Sh338 billion in the same period the previous year.

KRA Commissioner General John Njiraini said the growth was seen in the first half of 2012/13 financial year despite a challenging operating environment encountered in the economic and legislative arenas.

Medium and Small taxpayers department grew the highest by 22.2 percent to Sh77.7 billion compared to Sh63.6 billion in the first half of previous financial year.

On the other hand, Total Domestic Taxes which contributed the highest share of the total revenue of 65 percent grew by 15 percent to Sh248.3 billion from Sh214.9 billion in the previous period.

The transport sector grew by 7.4 percent to Sh1.5 billion compared to Sh1.4 billion earlier, despite giving the least contribution of 0.4 percent.

“We believe we could have done better but our economic parameters fell short of expectations and thus undermined performance in the first half of the financial year. It is estimated that these deviations have cost the Exchequer Sh16 billion by the end of December,” Njiraini said.

Revenues in the second quarter, between October to December last year grew by 14.4 percent to Sh202 billion from Sh177.1 billion in 2011/12 financial year.

Njiraini also touched on decrease in oil revenue collections by 2.2 percent within the first half as one of the hindrance for better growth.

Some of the challenges and which stands as major risk that the authority is planning to deal with is in the Domestic VAT area where there have been increase in “invoice trafficking’.

KRA boss says people have been printing fake invoices to facilitate VAT input deductions claims.

Advertisement. Scroll to continue reading.

“We have identified some of the companies involved in the malpractice and action is already in progress to investigate and stamp out the menace,” Njiraini warned.

In the recent supplementary budget, the Treasury allocated KRA over Sh2 billion to come up with a system of sealing all tax loopholes.

KRA expects to collect Sh881 billion compared to Sh707.4 billion realised last year, in this financial year.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...