URA collected 1.2 trillion Shillings in July 2020 against a target of 1.02 trillion Shillings – registering a surplus of 179 billion Shillings for the month, according to the reporting by the Ministry of Finance in July performance of the economy report.
Tax collections were above target in July
Revenue Authority - URA registered a surplus in tax collections for July 2020 after some
people and corporations that had suspended payments during the Coronavirus (COVID-19) lockdown
collected 1.2 trillion Shillings in July 2020 against a target of 1.02 trillion Shillings –
registering a surplus of 179 billion Shillings for the month, according to the
reporting by the Ministry of Finance in July performance of the economy report.
revenue collections were higher than the target for the month partly because of
spillovers from the previous financial year” said the Ministry of Finance. The surplus in July is a promising start for the government for the 2020/21
financial year especially when the government struggles to collect money much of
the second half of the 2019/20 financial year.
of Finance says in that the July 2020 revenue target was derived from the target of Shs 20.8 trillion shillings for the financial year as passed by
parliament in the approved budget.
report says the performance was explained by the payment of some taxes that
were supposed to be paid in 2019/20 financial year but spilt over into July
taxes had delayed due to delays in filing for taxes of imported goods as the movement was restricted during the lockdown –which explains the performance of
international trade taxes.
order to help businesses affected by lockdown, the government adopted a policy of
tax deferment where businesses were asked to pay later. Both
international taxes and domestic taxes registered surplus, with taxes on
international trade and transactions registering the biggest surplus.
in domestic taxes, the report notes also benefited from the pick-up in economic
activity in July following the easing of lockdown restrictions.
to the Stanbic Bank purchasing managers’ index (PMI) for August indicated that
upon lifting of the Coronavirus restrictions, business confidence picked up
immediately. More companies increased on their production. The survey, however, said many companies had not started bringing back
Revenue (NTR) collections, which is money from such things as fees for
passports, driving permits, were lower than the target for the month.
was 55.5 billion Shillings in July 2020 against a target of 75.20 billion Shillings.
This is because most of the Ministries, Departments and Agencies (MDAs) that
offer services on which NTR is generated had not yet resumed operations to full