Kenya tax collection up 15 pct yr/yr in Jul-Sept

Kenya's tax revenues for first quarter of fiscal 2011/12 (July-June) year rose 15 percent to 161 billion shillings compared with the same period a year ago, lifted by a jump in trade and domestic taxes, and was seen higher in he second quarter, its revenue body said.

The slowing economic growth and unfavourable macroeconomic environment adversely affected revenue collection during the first quarter. However the authority achieved a significant growth during the quarter, the Kenya Revenue Authority (KRA)said.

Government statistics show that gross domestic product (GDP) rose 4.1 percent in the second quarter of the year from the same period of 2010, down from 4.8 percent in the first quarter. Quarter-on-quarter, growth contracted 4.6 percent.

East Africa's biggest economy has been struggling to computerise its tax system and crack down on tax evasion.

The KRA said in a statement that between July and September direct domestic tax collection rose 21 percent to 68.14 billion shillings. International trade taxes climbed 17 percent year-on-year to 58.73 billion shillings.

It said it expected to collect 186.6 billion shillings in the second quarter, up from 162.7 billion shillings During 2011/12, it expects to collect 733.4 billion shillings, up 16 percent over the previous year.