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.
“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.