Treasury Cabinet secretary Ukur Yatani [Photo: CGTN Africa]
Nov, 23rd 2020 – Businesses are starting to recover from the COVID 19 pandemic after KRA collected Sh79.69 billion in the July-September period from taxes payable on income, profit and capital gains by corporations and enterprises against a target of Sh76.64 billion.
In their latest publication, taxes from company profits surpassed the Treasury’s target by Sh3.05 billion in three months ended September.
Despite authorities progressively easing Covid-19 restrictions in the July-September period, firms generally maintained cost-cutting measures such as redundancies, pay cuts, unpaid leave and a freeze on non-priority expenditures such as marketing and advertisement.
The good collection by KRA for the first three months is likely to see Parliament decline National Treasury’s proposal to lower revenue targets for the domestic revenue collector as indicated in the latest 2020 Budget Review and Outlook Paper.
Treasury Cabinet secretary Ukur Yatani has asked lawmakers to slash domestic revenue collection targets this financial year and instead increase borrowing to Sh1 trillion to bridge the wide budget deficit.