in ,

KRA Targets Real Estate, High Net Worth Individuals In Bid To Hit Ksh2.5 Trillion Yearly Tax Collections

Nairobi Hospital
Times Tower, the building that houses the KRA. [PHOTO/ COURTESY]

Kenya Revenue Authority (KRA) is estimated to collect Ksh6.8 trillion over the period 2021/22 to 2023/2024 financial years.

According to KRA, through its eighth Corporate Plan, it is expected that the exchequer revenue will rise from Ksh1.76 trillion in 2021/22 to Ksh2.5 trillion in 2023/24.

Through the target revenue collection, the Authority is expected to sustain an annual average growth of 16.9 per cent over the period in which nominal GDP growth is also projected to grow at 11.2 per cent.

To increase revenue collection and achieve the set target, KRA will expand the tax base by tapping into new taxable income sources.

Key focus as highlighted in the Corporate Plan will be on sectors with potential for revenue growth, such as real estate, businesses in the Turnover Tax (ToT) regime, registered companies, agriculture sector, employment sector, High Net-Worth Individuals (HNWI) and the digital economy.

Read: How Key KRA Officials Enable Ksh8 Billion Monthly Tax-Evasion in the Alcohol Beverages Market

The Authority aims at increasing the number of active taxpayers by an additional two million. Through its Customs & Border Control Department (C&BC), KRA will also focus on enabling trade across borders through facilitation of legitimate trade by effectively monitoring both land and sea borders and strengthening of the Authority’s Marine Unit. KRA will also improve pre-arrival cargo clearance using its Integrated Customs Management System (iCMS).

Speaking during the launch of the 8th Corporate Plan, KRA Commissioner General Mr Githii Mburu said that the Authority is up to the task amidst various challenges that range from an upcoming general election in 2022, post-COVID-19 recovery measures and a growing informal sector that is hard to tax.

He said that the achievement of the 8th Corporate Plan deliverables will be supported by the six thrusts: revenue mobilization, tax base expansion, simplification of the tax regime, application of cutting-edge technology, performance-oriented and ethical organization culture and strategic partnerships to bolster compliance.

CS National Treasury Mr Ukur Yatani lauded KRA for its achievements during the 7th Corporate Plan (2018/2019 -2020/2021) period.

Key achievements he said include the growth of the active taxpayer base by 55 per cent, from 3.94 million in 2018/19 to 6.1 million.

Read: Nairobi County Parking fees Revenue Down by 400 million after Takeover by KRA

Revenue collected during the plan period was Ksh4.849 trillion, a 21 per cent growth compared to the 6th Corporate Plan period in which total Ksh4.000.8 trillion was collected.

KRA registered an improved performance despite the outbreak of the COVID-19 pandemic that cropped up in early 2020 leading to the emergence of new business models, increased use of the digital platforms for transactions and growth in the hard-to-tax sectors, such as the informal sector.

Other strategies that KRA aims to implement during the 8th Corporate Plan period include; simplification of the tax regime to ease compliance and service delivery, application of cutting-edge technology in revenue mobilization, strategic partnerships to bolster compliance, facilitating and motivating staff for enhanced productivity by emphasising on ethical conduct and professionalism by all staff.

Email your news TIPS to news@kahawatungu.com or WhatsApp +254708677607. You can also find us on Telegram through www.t.me/kahawatungu

Written by Francis Muli

Follow me on Twitter @francismuli_. Email francis@kahawatungu.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

DCI Launches Hunt for Suspect in Fraudulent Sh15 Million Refugee Deal after Skipping Bail

KDF Confirms Fatalities in Kajiado Military Chopper Crash