- KRA realized a Sh 3.05 billion tax difference of revenue collected within a three-months.
- Data is takes from taxes payable on income, income per capita, and profits from different enterprises and organizations.
- Tax collected amounted to Sh 79.69 billion which is against the expected target which stood at Sh 76.64 billion.
The Kenyan Economy has drastically picked up from the Covid-19 pandemic shock by outshining the treasury expectation following a higher tax collection since the reopening of businesses.
This is after the treasury realized a Sh 3.05 billion tax difference of revenue collected within a three-months; between the months of July and September even as the business continues to battle the economic challenges brought about by the pandemic.
The positive feedback has been a result of increased working hours, lifting of intercounty travel bans, and resumption of international and commercial flights which has greatly boosted the export of goods and travel services.
The revenue collected by the Kenya Revenue Authority within the months of July, August, and September from the taxes payable on income, income per capita, and profits from different enterprises and organizations amounted to Sh 79.69 billion which is against the expected target which stood at Sh 76.64 billion.
The Kenyan Economy is Recovering.
This is an indicator that the economy has managed to recover at a faster pace than had been expected even as the pandemic continues to strike.
The corporation taxes outshined the Treasury expectations as measured by the Stanbic Banks Purchasing Managers Index averaged at 54.5 against an average of 42.38 in six months through June 2020.
The Purchasing manager’s Index findings as per the corporate managers showed that the workforce count only started growing in October 2020.
In the meantime, firms have continued to maintain cost-cutting measures such as redundancies, pay cuts, unpaid leaves, and a freeze of non-priority expenditures such as marketing and advertisements to ease the pandemic tension.
Corporation taxes between the months of July August and September have however displayed a 3.43 % drop compared to when firms were paying a 30% tax on earnings.
This is following the move by the treasury to cut the corporate income tax rate from 30 to 25% in April 2020 to help businesses and enterprises to recover from the pandemic.