Kenya Revenue Authority will target be targeting mobile money transfers and the new expanded legislature in its bid to meet the new 1 trillion revenue target set for FY 2012/13. The initial target for the taxman in the new financial year was KES 870.5, which has been stretched owing to the recently awarded wage adjustments in the public sector. With relevant legislation enacted in the Finance Bill 2012, financial transactions including mobile money transfers and ATM withdrawals will be taxed at 10%.
KRA will also be targetting an expanded legislative wing of parliament to net in more revenue in the new financial year. Following promulgation of the new constitution, there will be an additional 80 constituencies in Kenya bringing the total to 290 from the current 210.
After the president’s refusal to sign into law a bill to allow MPs to take home a KES 2.1 billion send off package, legislators have vowed to shoot down the Finance Bill 2012. The bill, which the government hopes is passed contains the VAT Bill 2012 which is one of the tax man’s biggest revenue increase target.
Listing of more companies
Finance minister Njeru Githae has appealed for more companies to be listed on the Nairobi Securities Exchange to enable KRA realize the set targets. Githae said that listed companies are the biggest source of taxes and increasing their number would directly increase the amount the taxman collects every year. Githae noted that the KES 1 Trillion revenue collection target is ambitious but achievable and promised KRA that sufficient provisions will be made to enable the taxman achieve this target.
Githae was speaking at the Top 10 taxpayers announcing function at NSE where Safaricom was announced the biggest tax payer.