KRA eyes Sh6.8 trillion revenue in three years
Lewis Njoka @LewisNjoka
Kenya Revenue Authority (KRA) plans to collect Sh6.8 trillion in revenue over the next three financial years up from Sh4.8 trillion collected during the just-ended period.
Commissioner General Githii Mburu said KRA plans to increase the number of active taxpayers by two million over the three-year period leveraging innovation while sealing tax loopholes to meet the revenue targets.
He said the projected growth of taxes during the period was anchored on economic growth and enhanced tax compliance.
“We will therefore expand the tax base by targeting sectors with potential for revenue growth such as real estate, businesses in the turnover tax regime, non-compliant businesses, professionals, high net-worth individuals, and the digital economy,” Githii said.
Further, he added, the taxman will seal revenue leakages through a multi-faceted programme that will entail, curbing corruption among our staff and tax evasion by taxpayers.
“This will be realised through deployment of our robust intelligence network to penetrate corruption and tax evasion cartels to bring to bear the consequences of evading taxes and engaging in corrupt practices,” Githii said during the launch of the 8th Corporate Plan in Nairobi yesterday.
The plan covers three financial years from 2021/2022 to financial year 2023/2024.
Additionally, the taxman plans will be banking on technology with plans to adopt modern technologies such as Artificial Intelligence (AI), Blockchain and Machine Learning to support revenue mobilisation.
Going by the medium term 2021 budget policy statement, however, the revenue projections by KRA will sink the country into a Sh2.8 trillion budget deficit over the three year period probably to met through borrowing.
Policy statement
In the three year period between 2021/22 and 2023/24, Treasury projects to spend Sh9.6 trillion, according to budget policy statement.
In 2021/22 the National Treasury plans to spend Sh3.02 trillion (excluding debt redemptions), Sh3.2 trillion in 2022/23 and Sh3.4 trillion in financial year 2023/24.
National Treasury Cabinet Secretary, Ukur Yatani said Treasury, through the Economic Recovery Strategy is seeking to reduce the level of fiscal deficit from 8.7 per cent of gross domestic product (GDP) in the current Budget to 7.5 per cent of GDP in the financial year 2021/22 and further to 3.6 per cent of GDP in the financial year 2024/25.
“This will help stabilise the growth in public debt over the medium term. This programme is supported by the International Monetary Fund (IMF), among other partners with the IMF providing financial support of US dollar 2.34 billion over the next three years,” he said during the unveiling of the plan.
To implement the three-year plan, KRA estimates it will be required to spend Sh117.6 billion which translates to 1.75 per cent of the Sh6.8 trillion it plans to collect.
During the seventh plan, KRA grew active taxpayer base by 55 per cent, from 3.9 million in the financial year 2018/19 to 6.1 million 2020/21.
