KRA upbeat on attaining tax target

By Luke Anami

The Kenya Revenue Authority projects its ordinary revenue collection to grow by 11.5 per cent this financial year.

This fiscal year, the Government is expected to collect Sh510.7 billion.

The revenue collector is expected to collect an estimated Sh455.4 billion as ordinary revenue, which is almost 96.3 per cent of the projected total revenue collection.

"KRA is basing its resource forecast on the assumption that the Government will adequately fund KRA’s recurrent and development activities," Mr Micheal Waweru, KRA’s Commissioner General said during the launch of the fourth corporate plan on Monday.

"Further, Tax revenue has improved almost threefold. Full automation of the Authority is expected to minimise customer compliance costs and enhancing customer service as we widen the tax revenue collection base."

Waweru said this will be achieved by expanding the tax base, improving compliance and deterring abusive tax behaviour between 2009 and 2012.

KRA will pursue new revenue and compliance initiatives, whose strategic objective is to achieve revenue targets by rolling over uncompleted revenue mobilisation programmes.

Tax refunds

"The principle revenue challenge will be to maintain revenue growth above the nominal Gross Domestic Product in line with revenue resource requirements," he said.

Further, KRA has introduced an internal corruption department that will liaise with other government agencies to reduce the vice among its staff.

"The department will work with the Police, the Kenya Anti-Corruption Authority and other bodies to fight the vice from within," Waweru said.

On tax refunds, he said a Government audit would be completed in December this year.

He said about Sh1.9 billion has been set aside in the budget for tax refunds and the Authority will soon pay upon completion of the audit.

"We expect to continue with KRA’s hard earned tradition of achieving revenue targets and successfully implementing reform initiatives," he added.