KRA nets Sh5.9b from taxpayers with arrears
Kenya Revenue Authority (KRA) has started reaping big from the introduction of the Voluntary Tax Disclosure Programme (VTDP) in 2020.
The programme brought in Sh5.9 billion in collections from 6,690 taxpayers who opted to settle their arrears last year so as to enjoy a full waiver of penalties and interests. It contributed a big chunk to the Sh976.7 billion collected by the taxman in the first half of the 2021/22 financial year, against a target of Sh929 billion, representing an Sh47.5 billion increase.
The VTDP gives taxpayers an opportunity to declare instances of non-compliance where the same occurred within a period of five years prior to July 1, 2020, and thereafter benefit from a waiver of penalties and interest ranging from 100 per cent to 25 per cent of accrued penalties and interest.
Data from KRA shows that domestic taxes performance improved, with a 30.8 per cent growth compared to a similar period last year while domestic revenue collection recorded a surplus of 102.4 per cent (Sh14.4 billion), enabling the agency to net Sh618.3 billion.
Pay As You Earn (PAYE) on the other hand registered a performance rate of 105.7 per cent over the period to Sh221.3 billion mainly driven by gradual growth in employment and the emanating economic recovery.
During the period under review customs revenue recorded 19.5 per cent growth from the half-year projections to Sh355.9 billion, a growth that KRA attributes to customs revenue performance and 25.4 per cent growth in trade and petroleum taxes.