PHOTO | JEFF ANGOTE | NMG
The Treasury is likely to net lower revenues in the three-month period between April and June, when the fiscal year ends, resulting from reduced economic activity including trade volumes.
According to an analysis by tax and financial advisory firm Deloitte, the revenues are projected to fall by Sh70.1 billion ($658 million) during the period even as amounts collected between January-March remained unknown.
In the first six months (July to December 2019) of the fiscal year, the total revenue stood at Sh920.6 billion against a target of Sh1.059 trillion — leading to a shortfall of Sh138.4 billion — for the period.
The tax and financial advisory house said the reduction in economic activity will see the gross domestic product fall to 1.0 percent this year from the pre-Covid-19 forecast of 5.7 percent.
Deloitte projects the value of imports, one of the largest sources of tax revenues, will decline by 3.1 percent or Sh58.06 billion ($545 million).
