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Covid drills Sh42bn hole in tax revenue

Treasury Secretary Ukur Yatani

Planning PS Saitoti Torome, Treasury Secretary Ukur Yatani and Chief Administrative Secretary Nelson Gaichuhie during the launch of the second voluntary national review on the Sustainable Development Goals report in Nairobi on July 6, 2020.
 

Photo credit: Salaton Njau | Nation Media Group

Tax collections on earnings made by companies and individuals fell by Sh42.83 billion in the first four months of the current financial year ending June 2021, weighed down by depressed economic activity due to Covid-19 crisis.

Income tax receipts amounted to Sh198.21 billion in the July-October 2020 period, a 17.77 per cent drop compared with Sh241.04 billion, according to data the Treasury shared with Central Bank of Kenya.