BUSINESS and FINANCE

Kenya Revenue Authority : Revenue Increases By 40%

Kenya revenue authority revenue has increased by 40% according to reports from the taxman. The authority has seen an increase in revenue collection because of the implementation of excise duty stamps in the country.

The Kenya revenue authority has reported an increase for revenue collected for the financial year ended 2015. It credits the launch of the excise duty stamps in different entry ports of the country. According to KRA, the excisable good management system that rolled out wines and spirits, tobacco has seen a major reduction in revenue leakages and revenue lost from tax evasion. According to the commissioner for domestic taxes Miss Alice Awuor the proliferation of contraband wines, spirits, and tobacco has been curbed therefore, the authority can make revenue from the sales from the different companies.

The excise stamps rolled out in the year 2013 was focused on wines, spirits, and tobacco products. This has been expanded further to include beverages such as soda, beer, bottled water, juices and carbonated soft drinks. The introduction of the system allows the authority to curb all illicit revenue evasion techniques. Miss Alice indicated that the system gives the authority an avenue to monitor all the revenue generated over the period and approval of the delivery. The details on the excise stamp are captured during the time of printing and this can be tracked throughout the supply chain.

She further noted that the country budget deficit this will decline by 5% this year and 4% in the coming financial year. The decline in national deficit means that the government will reduce borrowing and thus give different businesses an avenue to invest more in the country. The tax authority indicates that they are trying to curb all tax evasion and avoidance in the country. The current system is seen as the most effective in revenue generation.

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