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“We have currently forwarded 118 cases to court from which we have lost we have so far lost Sh53 billion,” said Yego/FILE


KRA key tax heads register subdued growth in last financial year

PAYE grew by 7.9 per cent as a result of subdued growth in the private sector employment/FILE

NAIROBI, Kenya, Aug 6 – Kenya Revenue Authority (KRA) major revenue generators registered slow growth in last financial year.

According to the tax man 2018/2019 financial report, one of the leading tax sectors domestic tax revenue rose.

“Domestic Excise the tax head, which grew by 12.3per cent is a volume driven tax and dependent on volume growth in cigarettes and beer. Thus, the growth was primarily explained by slow volume growth in cigarettes and composition in beer deliveries,” said KRA commissioner General Githii Mburu.

The domestic VAT growth was also explained by growth in withholding VAT and growth in public sector withholding which grew by 12.1per cent.

“Oil Revenues grew by 16.3per cent mainly driven by Sh17,220 million additional revenues as a result of Tax police,” Mburu explains.

Non-Oil Revenues also grew by 11.6 per cent with a positive influence of S38,217 million during the financial year.

On the other end, Corporation Tax rose by a minimal 5.5 per cent in the latest financial year despite being undermined by growth in investment deductions by 284 per cent compared to 2017/18.

KRA commissioner General Githii Mburu added that during the 4th quarter the sector was able to experience some changes prompting the growth.

“The tax head witnessed a turn-around in the 4th quarter, growing at 12.0 per cent compared to an average 1.8per cent over the 1st three ISO 9001:2015 CERTIFIED quarters, “said Mburu.

This was attributed to the turn-around in the bank’s performance with overall growth of 29.3per cent in the 4th quarter compared to a decline of 7.9per cent in the 1st three quarters.

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PAYE grew by 7.9 per cent as a result of subdued growth in the private sector employment. Employees Registered for PAYE grew by 4.5 % in Financial Year 2018/19


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