KRA net a record Sh220 billion tax in June
KRA (Kenya Revenue Authority) collects a record Sh220 billion in June owing to rollout of the electronic Tax Invoice Management System (eTIMS)
KRA (Kenya Revenue Authority) collects a record Sh220 billion in June owing to rollout of the electronic Tax Invoice Management System (eTIMS).
After surpassing the Sh203.8 billion collected in June 2022, the Kenya income Authority (KRA) achieved a new historical high in monthly tax collections in June 2023 with a record-breaking Sh220.6 billion in tax income.
According to the taxman, the authority realized high conversions in the final month of the fiscal year 2022–2023 as a result of exchequer releases, particularly from public sector Pay As You Earn (PAYE).
Overall, PAYE reported Sh494.9 billion in collections for the fiscal year 2022–2023, with increases in private sector and public sector collections of 10.7 percent and 1.9 percent, respectively, over the prior fiscal year.
“The collections for June 2023 delivered a 98.1 percent performance rate. PAYE had been a bit slow for the public sector in 2022/23 but when it came to June the collection for that tax head hit 107 percent performance because of exchequer releases. Sometimes these releases are done at the tail end and, therefore, we are not quite able to convert them and report in time,” KRA’s acting Commissioner General, Rispah Simiyu says.
The KRA claims that given the effect it had on withholding tax collections, payments made to settle outstanding bills were crucial to the performance in June 2023.
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The entire amount of unpaid national government bills as of March 31 was Sh537.2 billion, according to the Treasury.
The county governments reported pending invoices totaling Sh159.7 billion during the same reporting period.
The rollout of the electronic Tax Invoice Management System (eTIMS) as the second phase of the transition from the Electronic Tax Register (ETR) to the Tax Invoice Management System (TIMS) and the requirement that effective June 1 all VAT registered taxpayers only accept electronic tax invoices is also reported as a major boost to the impressive collection.
“Domestic VAT registered Sh24.4 billion in June with a 100.4 percent performance rate which translated into a growth of 21.7 per cent when compared to June 2022,” she said.
“In February this year, collections from domestic VAT just shot up and what changed is that we moved from a device-based system to a software-based system in pursuit of real-time collections. What the transition to eTIMS meant was that all one needed to have was a smart device.”
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