Tax revenue

His response follows the Internal Revenue Commission’s (IRC) announcement of successfully collecting K8 billion in tax revenue for 2018.

“However, after excluding a large and unexpected mining and petroleum tax bonanza of nearly K700 million, all other IRC collections are K500 million less than the government wanted in 2018. This is part of the fake revenue that I identified in my budget response.

Tax revenue, which covers income, profits and capital gains, is projected to decrease by K284.2 million and now predicted to stand at K5,534.7 million under the MYEFO, relative to the 2017 Budget estimate of K5,818.9 million.

The MYEFO says this is driven mainly from a reduction in company income tax, anticipated to be lower by K290.3 million.

In the first half of the year, the company income tax amounted to K647.5 million, which is 27 percent of the budget estimate.