The government 2019 Financial Year Statement Report has indicated that has been 23% increase in Revenue Generation by government.
That in the Financial Year of 2018, revenue generated was Le4,582.1 Billion which increased in 2019 to the tune of Le5,643.8 Billion marking the Twenty-Three (23) percentage increase.
“The Government revenue in FY2019 was Le 5,643.8billion, increasing by 23% over the amount of Le 4,582.1billion collected in FY2018. This compares adversely against the budget target of Le 5,662.8billion, with a slight negative variance of about Le 19.02 billion,” the report indicated.
That income tax revenue contributed Le1,855.1 Billion which is Thirty-Three (33%) of the total domestic revenue for the Financial Year.
And that revenue generated out of Goods and Services Tax (GST) amounted to Le1,037.1 Billion which contributed Eighteen (18%) percent to the government revenue.
The report also highlighted that Customs and Excise duties generated Le1,313.9 Billion which contributed Twenty-Three (23%) percent and Mineral revenues generated Le236.5 Billion which amounted to Four (4%) percent of the government domestic revenue generated for the 2019 Financial Year among others.
That income tax receipts totaling Le1, 855.1 Billion were still the main source of domestic revenue, of which the major components were Personal Income Tax of Le 1,544.6 Billion and Withholding Tax-Government Contractors and Free Health Care Tax amounted to Le 39billion and Le 4.5 Billion respectively in the 2019 Financial Year.
That total income tax receipts of Le1,855.1billion increased by 15% which is Le 242 Billion more than that of the Financial Year of 2018 and also compared negatively with the Budget target of Le2,017.8 Billion, resulting in a negative variance of 8% or Le163 Billion.
The report however, indicated that Personal income tax revenues increased by Le 190 Billion or 14% to compared to Le1, 355.0 Billion in 2018. This is because of increases in PAYE- Government Employees, Withholding Tax-Free Health Care, and Withholding Tax-Government Contractors.
That government introduced a revenue mobilisation strategy in 2019 Financial Year focusing on strengthening the revenue administration and policy reforms to broaden the tax base, noting that these measures will in anticipation maintain the revenue to GDP ratio to 15% in FY2020.