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Wednesday, September 15, 2021

Hard economic times deny KRA tax targets

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The hard economic times being experienced in the country have affected the tax collection targets by the Kenya Revenue Authority (KRA).

Most contributing factors that made KRA miss its revenue targets were lack of jobs and low salaries.

In a report by the Business daily, the government had hoped to collect more revenue from new jobs and salary increases especially in the private sector but unfortunately KRA recorded a 12percent shortfall in its targeted tax collection from salaries.

The country collected Sh98.1billion in the first three months of the current financial year from Pay As You Earn(PAYE) therefore missing their target of collecting Sh110billion.

The Treasury had also anticipated to collect Sh1000billion from income tax but KRA only managed to collect Sh82million result attributed to the unemployment rate.

This presents the hard fact that the country is lagging behind in job creation with the government doing very little to create jobs even after devolution where the counties were supposed to open more employment opportunities.

Reports furher indicate that evry Sh100 collected from Kenyans, Sh60 goes to the repayment of debt which means the country is left with very little to spur development.

Excise duty for the first quarter of the fiscal year was Sh49billion against a target of Sh57billion while import duty was Sh25billion against a target of Sh32billion.

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