The Government positively predicts Personal Income Tax revenue to remain over K3 billion in 2017.
Under the 2017 National Budget, Personal Income Tax is expected to increase by K186.6 million from the 2016 revised projection of K2, 849.1 million (K2.9 billion), after failing to reach budget estimate of the same figure in 2016.
The projection is said to be driven by the following factors:
- an increase in employment supported by improved business activity from the gradual improvement in commodity prices;
- better growth outlook for agriculture and the mining sectors; and
- the General Elections and the APEC constructions.
The Government states that combined with K150 million from compliance measures and a tax measure on Employer Provided Housing Benefits there will be an increase in the Personal Income Tax.
The estimate follows weaker collections in 2016 by K228.3 million, despite a Supplementary Budget estimate of K3, 077.4 million (K3 billion).
Meanwhile, a projection of K5, 818.9 million (K5.8 billion) is estimated for Taxes on Income Profits and Capital Gains.
It comprises the major tax sources which include Personal Income Tax at K3,035.7 million (K3 billion), Company Income Tax at K2, 433.9 million (K2.4 billion), K154.2 million in Mining and Petroleum Tax (MPT), K138.8 million in Dividend Withholding Tax, K77.8 million in Interest Withholding Tax and K54.9 million in Royalties and Management Tax.
The Tax Revenue of K9, 182.2 million (K9.2 billion) makes up 80 per cent of the projected total revenue.