Kenya Revenue Authority headquarters [Photo|Business Daily]
Kenya Revenue Authority (KRA) is expected to fall Sh60 billion shy of their revenue target according to the National Treasury.
This follows a recent projection by the ministry where they have called upon KRA to raise Sh1.439 trillion, down from the initial Sh1.499 trillion budget.
During the four months to October, the country's tax revenue stood at Sh405 billion which further indicated that KRA would not manage to meet the target set for the year.
According to Treasury Cabinet Secretary Henry Rotich the taxman had fallen shy as a result of customs duty following the government's importation of sugar, maize, and milk for free to cushion consumers against a sharp rise in inflation.
“We have discussed with KRA on measures of recouping the lost revenue by instituting administrative changes,” he said.
As a result, the taxman is expected to introduce more tax valuations and improve shipment inspections. They will also be monitoring linked bank accounts through the use of the Integrated Financial Management Information System (IFMIS) and the Central Bank of Kenya.