Nairobi, July 9 -- Tax collections on domestic sales have slipped to a four-year low, signalling the impact of Covid-19 woes on consumer spending.

The Kenya Revenue Authority (KRA) has reported a 7.9 percent decline in domestic value-added tax (VAT) receipts to Sh196.99 billion for the financial year ended June 2021.

This is the weakest collection from domestic VAT since the year ended June 2017 when the receipts amounted to Sh194.23 billion, marking the deepest erosion of consumer's spending power in four years on the back of Covid-induced pay cuts and layoffs.

"The performance of the tax head was primarily affected by the Covid-19 pandemic, which saw businesses turnovers decline," KRA commissioner-general Githii Mburu wrote in the stat...