Nairobi — The Kenya Revenue Authority (KRA) has collected Sh228 billion in the first quarter of the financial year 2013/2014, against a Sh224 billion target. This comes a few weeks after the government passed a controversial VAT Act that saw basic food commodities including milk and bread taxed, raising a huge public outcry.
At the time, a packet of milk and a loaf of bread were retailing at an average of Sh60 each. President Uhuru Kenyatta later declared that milk and bread were non-taxable before traders went back to the initial milk and bread prices.
In the last financial year, the tax man missed the revenue collection target by Sh85.9 billion against an initial target of Sh845.4 billion. Critics have also advised KRA to think of other ways of hitting its tax collection target rather than by taxing basic commodities. Landlords are also being targeted by the tax collector and they are supposed to be remitting taxes from their properties.