|Post Date: 15 March 2017 | Category: General | Hits: 1898|
Every financial year the government presents the budget estimates to parliament for approval. The estimates are based on the target revenue that the government anticipates to raise in order to meet its expenditure needs. This brief assesses the performance of the revenue against the target. The analysis aims at revealing the extent to which the budget targets are realistic and also sources of revenue that ought to be improved to maximize tax collection.
- The total actual revenue collected for the first half of 2016/17 was Ksh 995 billion, representing 92% of the target.
- Investment revenue, Local VAT, Other Income tax (mainly corporation tax) and Excise duty are among the taxes that are performing above the average.
- PAYE, Import duty and VAT on imports, though are below the average, they are however, performing highly, approximately 90% of the target.
- It is noticeable that external grants and revenue from traffic are underperforming; actual revenue collected from external grants is 14% of the target while that collected from the traffic is 66%.