Nairobi, July 6 -- Payroll taxes fell an estimated Sh37.13 billion in the financial year ended June 2021, reflecting the impact of Covid-induced layoffs and pay cuts on a tough labour market.
The Kenya Revenue Authority (KRA) has reported a 9.3 percent drop in Pay As You Earn (PAYE) tax receipts in the review period compared to a year earlier when the taxes amounted to Sh399.20 billion.
The taxman has blamed the drop from Sh399.20 billion to an estimated Sh362.08 billion on the impact of the pandemic on private sector jobs.
"The decline was driven by the reduction in employment emanating from measures taken by mainly private firms to reduce operating costs as a result of Covid-19 pandemic," KRA Commissioner-General Githii Mburu said in a...