Home Business Payroll taxes fall Sh52bn as firms reduce pay, staff

Payroll taxes fall Sh52bn as firms reduce pay, staff

kenya revenue authority kra, taxation, tax, revenue collection
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Business Daily | by Constant Munda


Payroll taxes plunged by Sh52.65 billion in the six months to December 2020 as firms stepped up pay cuts in a tough labour market that defied re-opening of the economy.

The Kenya Revenue Authority (KRA) collected Sh152.62 billion in Pay As You Earn (PAYE) In July-December 2020 period compared with Sh205.27 billion a year earlier, data published by the National Treasury show.

The 25.65 percent drop in PAYE receipts – the first contraction in more than a decade – pushed the collections from monthly workers’ pay to the lowest levels…

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