April tax receipts shoot by 28 per cent to Ksh.153 billion

During April, the National Treasury booked tax receipts rose by 27.7 per cent to Ksh.153.4 billion from Ksh.120.1 billion at the same-time last year.

Rebounding economic activity in the period mainly led to the growth in the tax revenues. 

Business activity remain largely uninterrupted despite the greater restrictions affecting five key counties hit home during the month as compared to April last year when there was a highly volatile the macro-economic environment. 

Through 10 months of the fiscal year, tax revenues are cumulatively at Ksh. 1.191 trillion. This is slightly below Ksh1.24 trillion in taxes in the same period covering the last financial year.

In contrast to the same period last year whereby the total ordinary revenue was Ksh.1.346 trillion, this year the total ordinary revenue stands at Ksh.1.272 trillion. 

Still, the effects of the pandemic on collections at the start of the financial year in July have dragged down KRA largely as it is expected that the taxman will miss its revised revenue collection target of Ksh.1.470 trillion despite the improving collections. 

KRA must average Ksh.139.5 billion in collections across May and June to meet the truncated targets.