Taxes collected by KRA in 2020 can finance Tanzania budget and still remain with some change
Taxes collected by KRA in 2020 can finance Tanzania budget and still remain with some change
tuusan
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Hujielewi...mkifinance yetu nyie hamna mahitaji? Haiwezekani hamna Huo uwezo...kusanyeni $50B mje mtusaidie
Darmian
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[emoji23][emoji23][emoji23][emoji23]Amaizing.
tuusan
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Wewe kwa pumba uko vizuri
ras jeff kapita
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Mbona hesabu yako ya kijinga sana.....Total taxes collected by KRA are $16B while Tanzanian total budget for 2021/2022 is $14B. This means that KRA can finance Tanzanian budget na wabaki na change ya $2B
KRA surpasses 2020/21 revenue target
This is the first time since financial year 2013/14
In Summary
•The 2020/2021 revenue target as reflected in the 2021 Budget Policy Statement was Sh1.652 trillion, which KRA surpassed with a surplus of Sh16.81 billion.
•This represents a performance rate of 101 per cent and revenue growth of 3.9 per cent compared to the previous financial year.
05 July 2021 - 04:00
The KRA headquarters at the Times Tower
Kenya Revenue Authority (KRA) has beaten its revenue target after an eight year struggle to meet its obligation in supporting the government's annual spendings.
The taxman has defined challenges brought about by the Covid-19 pandemic to surpass its target, since the financial year 2013/14.
Revenue collection in the financial year 2020/21, which ended on June 30, reached a new record of Sh1.669 trillion compared to Sh1.607 trillion collected in financial year 2019/20. This is both tax and non-tax revenue.
The 2020/2021 revenue target as reflected in the 2021 Budget Policy Statement was Sh1.652 trillion, which KRA surpassed with a surplus of Sh16.81 billion.
This represents a performance rate of 101 per cent and revenue growth of 3.9 per cent compared to the previous financial year.
It is consistent with the prevailing economic indicators, especially the projected GDP growth of 0.6 per cent in 2020, commissioner general Githii Mburu notes.
Revenue collection has more than doubled in the last 10 years from Sh707 billion in 2011/12 , representing a growth of 136 per cent.
In the period under review, the exchequer revenue grew by 2.3 per cent with a collection of Sh 1.544 trillion compared to Sh1.510 trillion collected in financial year 2019/20, and represents a performance rate of 100.9 per cent against the target of Sh1.530 trillion.
This is before accounting for Sh18.5 billion that the National Treasury has undertaken to pay on behalf of taxpayers for various reasons including economic hardship during the pandemic.
The Domestic Taxes Department (DTD) collected Sh1.039 trillion during the financial year translating to a performance rate of 99.8 per cent while Customs and Border Control collected Sh624.77 billion, surpassing its target of Sh606 billion.
Petroleum taxes amounted to Sh226.680 billion posting a growth of 34.5 per cent and a surplus of Sh12.252 billion.
Non-oil revenue recorded a growth of 16.4 per cent with collections amounting to Sh398.1 billion which was above target by Sh5.9 billion.
Corporation tax recorded a growth of 3.7 per cent in financial year 2020/21 despite a tough business environment, where the tax rate was reduced from 30 per cent to 25 per cent in the first half of the financial year.
"This performance was driven by increased remittance from energy, agriculture and construction sectors with a growth of 222.7 per cent , 33.1 per cent and 31.9 per cent respectively," Githii said in a statement.
Pay As You Earn however declined by 9.3 per cent, pegged on a reduction in the employment rate emanating from measures taken by mainly private firms to reduce operating costs as a result of the Covid-19 pandemic.
According to the taxman, the tax head was also affected by the reduction of the top PAYE rate from 30 per cent to 25 per cent and a 100 per cent tax relief for persons earning below Sh 24, 000 per month.
Withholding tax recorded a growth of 3.8 per cent which is a drop from an average growth of 18.2 per cent recorded the previous year.
"The performance was negatively impacted by depressed economic growth due to the impact of the Covid-19 pandemic," Githii said.
Domestic excise tax recorded a growth of 12 per cent compared to a decline of 6.4 per cent recorded in the last financial year.
The performance turnaround is attributed to the gradual reopening of the economy and extended operating hours for bars and restaurants.
Domestic VAT however recorded a decline of 7.9 per cent, primarily on effects of Covid-19 which saw business turnovers decline. The decline was also affected by the reduction of the VAT rate from 16 per cent to 14 per cent.
During the period under review, KRA implemented a number of Revenue Enhancement Initiatives that enabled the Authority to enhance revenue collection.
This was largely driven by enhanced compliance enforcement efforts and the implementation of new tax measures focused on ensuring that that non-compliant taxpayers pay their tax due.
The good performance is also attributed to Tax Base Expansion (TBE) which was a key deliverable in the authority's 7th Corporate Plan.
Through this initiative, KRA recruited more taxpayers through the newly implemented taxes including Digital Services Tax, Minimum Tax, and Voluntary Tax Disclosure among others.
Over the 7th Corporate Plan period, active taxpayers increased from 3.94 million to 6.1 million.
The introduction of Alternative Dispute Resolution (ADR) also saw taxpayers come forward to find an amicable solutions in disputes with KRA, Githii notes.
With the main objective being to ensure, faster, objective and efficient resolution of tax disputes, ADR enabled KRA to unlock Sh31.435 billion in taxes out of 552 cases resolved during the FY 2020/2021.
The enhanced recovery of tax arrears saw KRA mobilise Sh93.7 billion in the 2020/2021 compared to Sh84. 7 billion collected in financial year 2019/2020.
National Treasury has set the 2021/22 revenue target at Sh1.78 trillion, hoping the economy will rebound, projected at 6.3 per cent and 6.1 per cent in the medium.
Total revenue including A-I-A and grants is projected at Sh2.1 trillion, equivalent to 17.0 per cent of GDP.
The deficit in the Sh3.6 trillion will be funded through borrowing, both internally and externally, even as Treasury mulls reducing the fiscal deficit.
To meet its target, KRA is expected to collect Sh835 billion as income tax, which accounts for approximately 50 per cent of tax revenue, projected to increase by Sh102 billion.
The Authorities 8th Corporate Plan targets to collect Sh 6.831 trillion by the end of financial year 2023/2024.
KENPAULITE
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You like quoting Nigeria, are you Nigerian?
GREAT VISIONAIRE
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Tanzania collection last year ni 17 bill usd
Angalia attached. Na ndio nchi pekee kwa afrika iliyopata surplus ama ziada baada ya matumizi
GREAT VISIONAIRE
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Ni 9.5=10bill tunachukulia rate ya usd ya mwaka jana
Naton Jr
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Utampa mtu mia 2 wakati wewe Huna hata thumni ukishatoa hiyo mia 2?
Utajitapa kumpa mtu mia 2 wakati wewe na family yako mnahitaji elfu 1 kusurvive so mna deficit ya mia 8 pamoja na hicho kimia 2 chenu mnachoka kukitoa 😅😅😅
Ndio maana mnaitwa Kunyaland, wakunya akili zenu zote mavi kunuka
Halafu Mpo kama nyumbu mmoja akiongea pumba mpaka baba na wazee wanasapoti, Tanzania mtu akiongea pumba atakosolewa ila wakunya ni kama nyumbu wa Serengeti 😅😅😅
Utajitapa kumpa mtu mia 2 wakati wewe na family yako mnahitaji elfu 1 kusurvive so mna deficit ya mia 8 pamoja na hicho kimia 2 chenu mnachoka kukitoa 😅😅😅
Ndio maana mnaitwa Kunyaland, wakunya akili zenu zote mavi kunuka
Halafu Mpo kama nyumbu mmoja akiongea pumba mpaka baba na wazee wanasapoti, Tanzania mtu akiongea pumba atakosolewa ila wakunya ni kama nyumbu wa Serengeti 😅😅😅
nimulikie
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Unajidanganya sana.kiukweli maisha yenu kwa watu wa hali ya chini ukilinganisha na maisha ya watu wa hali ya chini wa tz.nyinyi ni maskini sanaaa na mnaishi maisha ya dhiki.
nimulikie
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Kwa ukweli upi? Ukweli ni nyinyi nasisi kwa mtu mmojamoja mnashi maisha ya dhiki na yasiyo na ustaalabu
Venus Star
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Kazi yako ya Nursing inakufaa zaidi. Mathematics waachie wajuzi.
Don YF
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Reasoning uchwara! incomplete reasoning just for a fallacious argument. Nigeria has one of the lowest tax to GDP ratio in the world, Kenya hatuja waacha mbali, Nigeria also has the lowest debt to GDP ratio in the emerging economies. Tax evasion and corruption denies them $15Billion in revenue..., so you cant mention them in the same sentence with Kenya without putting your use of Nigeria as an example into a clear perspective. Tanzania iko na better GDP to tax ratio than Kenya and Nigeria yet your revenue ya mwaka ni finyu, ina maana nchi ni fukara kiukweli!., 😂 😂 😂 Shida ya mitanzania ni bora alazimishe Kenya ionekane dhaifu kisa Tanzania iko way below ili mjiliwaze, so mnalazimisha reasoning uchwara, nyie ni fukara zaidi, hilo liko wazi tena sana.., why cant you explain Tanzania's low annual revenue collections vis a vis the national budget? Simple, ni ufukara ulio kita mizizi kote kote., issue yenu sio kama ya Nigeria.., discuss Tanzania mahala wewe uko kwa sasa..,
Mambo ya Nigeria soma taarifa..,
Nigeria grapples with formidable tax collection challenge
Government seeks to increase revenue as debt repayments balloon
A market in northern Nigeria.
The government's finance bill aims to bring more smaller businesses into the formal economy © Bloomberg
Improving crumbling infrastructure and poor services in Africa’s largest economy is one of the top priorities for Nigeria’s government. But with debt repayments ballooning to nearly two-thirds of revenues, it has struggled to find the money to tackle the problems and is ramping up efforts to boost tax collection. However, the challenge will be formidable in a country with one of the lowest tax-to-GDP ratios in the world, analysts say. Economists point out that Nigeria’s public debt — which at 20 per cent of gross domestic product is low by emerging market standards — is not the issue. “It is not that interest payments are too high; it is government revenue that is too low,” Yvonne Mhango, sub-Saharan Africa economist for Renaissance Capital, said in her 2020 outlook report for the region.
The Federal Inland Revenue Service has said it loses $15bn annually to tax evasion and that it has roughly doubled the tax base since 2015, when President Muhammadu Buhari was first elected. With the senate set to approve Mr Buhari’s plan to borrow $30bn for infrastructure projects in the coming months, the government wants to raise its tax take from roughly 6 per cent of GDP in 2017 to nearer 15 per cent, the threshold the World Bank says is necessary for economic growth and poverty reduction.
Don YF
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Mifukara EAC na SADC hakuna kitu unaongea humu, hiyo propaganda ya vijiweni tunaifahamu, unajiliwaza tu. mko ovyo ukanda huu, kutokana na uzembe wenu na serikali yenu uchwara, CCM ni ma cartels tokea zamani, not a govt, wanamiliki nchi raiya wanakodi, nyie mmebebwa ujinga tu na propaganda, matokeo ni uchumi hafifu, malofa wengi, yaani mifukara kwenye nchi iliyo barikiwa na hali na mali, laana ya kiaina, hakuna kingine zaidi ya hapo.