Kenya Revenue Authority (KRA) tax collections through the first quarter of the 2020/21 financial year have fallen by 15 per cent to Ksh.317.7 billion.
This from a total of Ksh.151 billion at this time last year according to data from the just issued National Treasury statement on actual revenues and net exchequer issues as at September 30, 2020.
The slump in tax collections is largely attributable to the COVID-19 pandemic hit on various tax heads including excise duty and income taxes. Tax collected during the month of September was down 14.2 per cent to stand at Ksh.129.6 billion from Ksh.151 billion in September 2019.
Non-tax revenue collections which encompass proceeds from fees, fines and other form of penalties however provided some respite for the tax man having doubled in the period to Ksh.24.9 billion from a flat Ksh.12 billion last year.
While recent government actions to ease restrictions has injected confidence to the business operating environment, a looming return to restrictions occasioned by a steady rise in the number of new COVID-19 infections has caused agony in the economy deeming prospects.