The Kenya Revenue Authority (KRA) has reported a significant boost in revenue collection attributed to the implementation of the Electronic Tax Invoice Management System (eTIMS), which has enhanced compliance among VAT registered taxpayers.
According to a report by KRA dated 8th July 2024, the Domestic VAT collection stood at Ksh314.157 billion against a target of Ksh307.823 billion, reflecting a growth of 15.3% compared to the previous year.
Additionally, Domestic VAT collections surpassed the target by Ksh6.334 billion. This growth is credited to eTIMS, with average monthly collection growth scaling up to 17.5% in the year under review.
Currently, monthly average Domestic VAT collections stand at Ksh28.680 billion in financial year 2023/24.
![KRA Commissioner General Humphrey Wattanga speaks during a past function. PHOTO/Courtesy](https://thekenyatimes.com/storage/2024/06/KRA-Commissioner-General-750x375-1.jpg)
KRA Financial Year 2022/23
In the second half of financial year 2022/23, the monthly average collection was Ksh26.250 billion, compared to Ksh23.599 billion in the first half.
During the financial year, Domestic Taxes registered a revenue growth of 14.4%, collecting Ksh1.611 trillion against a target of Ksh1.677 trillion, achieving a performance rate of 96.1%.
According to the report, Customs Revenue recorded a performance rate of 94.6% with a collection of Ksh791.368 billion, translating to a revenue growth of 4.9% compared to the same period in financial year 2022/2023.
Also, revenue mobilization for the financial year 2023/2024 grew by a notable 11.1%, up from 6.4% in the previous financial year, with KRA collecting Ksh2.407 trillion compared to Ksh2.166 trillion the previous year, a performance rate of 95.5% against the target.
Also Read: Penalties Nearly 1 Million Kenyans Who Didn’t File KRA Returns Will Face
Economic Challenges
Despite multiple economic shocks, including the depreciation of the Kenya Shilling, rising bank lending rates, and international conflicts disrupting supply chains, Exchequer revenue grew by 9.5%, collecting Ksh2.223 trillion compared to Ksh2.030 trillion the previous year, achieving a performance rate of 95.8%.
![KRA](https://thekenyatimes.com/storage/2024/05/58iegws5.png)
KRA also collects revenue on behalf of other government agencies at ports of entry, including Road Maintenance Levy, Air Passenger Service Charge, and others.
For the financial year ending June 30, 2024, KRA collected agency revenues amounting to Ksh184.036 billion, reflecting a growth of 34.9% compared to the last financial year.
Also Read: David Ndii Hints at What Next if Dropped by Ruto as Adviser
Pay As You Earn (P.A.YE)
Pay As You Earn (P.A.YE) registered a growth of 9.7%, collecting Ksh543.186 billion, driven by remittances from private firms and the public sector, which grew by 13.4% and 3.7% respectively.
Domestic Excise tax recorded a growth of 8.1% in Finance Year 2023/24, with a collection of Ksh73.624 billion, a performance rate of 99.6%, attributed to increased revenue from manufacturers of soft drinks, bottled water, beer, and tobacco.
Despite the challenging economic environment, taxpayers demonstrated resilience and voluntarily paid their taxes to support the country’s economic transformation.
As of June 30, 2024, a total of 8,046,029 tax returns were filed, against a target of 7,187,932, representing a 26% growth compared to the 6,385,523 tax returns filed last year.
Follow our WhatsApp Channel for real-time news updates!
https://whatsapp.com/channel/0029VaB3k54HltYFiQ1f2i2C
![National Treasury CS Prof. Njuguna Ndung’u. Photo/Ndungu(X)](https://thekenyatimes.com/storage/2024/06/Untitled-design-2024-06-13T135603.114.png)
Discussion about this post