KRA seeks Sh12b to transition to eTIMs in search of extra revenues
Kenya Revenue Authority (KRA) is seeking a budget allocation of Sh12 billion in the upcoming fiscal year to support its technology-driven revenue mobilisation plan alone.
The amount is expected to be regularised through the 2023 Budget Policy Statement (BPS) which will determine the final estimates for the Authority if the request gets the nod of the budget office. In a representation by the departmental committee on finance and national planning, KRA argues that it faces a colossal task of meeting the hiked tax collection targets if it is not equipped financially to deliver.
KRA’s 12 billion demand will push up the National Treasury’s budget ceiling from Sh130 billion which was indicated in the draft budget. The taxman has been charged with a target of raising Sh3.09 trillion in the FY 2023/24 up from Sh2.538 trillion in this current financial year.
“We are giving KRA much higher targets but they still have, for example, old scanners at the airport. The amount is for us to capture new people and to increase tax compliance,” said Kuria Kimani who chairs the department committee on finance and national planning.
He was speaking before the Ndidi Nyoro-led budget and Approbation Committee (BAC) that is currently scrutinising budget wish lists of various departmental committees.
To meet the collection target, KRA will be expected to revamp the infrastructure at the ports and borders by replacing obsolete scanners to boost customs revenues. It will also expand the networks of customs border points by establishing and operationalizing other One-Stop Border Posts (OSBP) to ease the movement of goods and boost collections.
KRA currently has about 7 OSBP at the borders of Busia, Moyale, Namanga, Taveta/Holili, Lunga Lunga, Malaba, and Isebania.