APRM • SECOND COUNTRY REVIEW REPORT OF THE REPUBLIC OF KENYA 335. Table 5 summarizes the Kenyan tax structure. In the fiscal year, 2013/2014, taxes on income profit and capital gains were the major revenue earner in Kenyan economy contributing over 49% of total tax revenue. PAYE contributed 27% of total taxes compared to corporate income tax 22%. The second revenue earner was VAT, 25.5%. VAT on imports (13.7%) generated more revenue than VAT on domestic goods (11.8%). Taxes on other goods and services contributed about 14% of total tax revenue. Taxes on international trade transactions, other than VAT on imports, accounted for a little over 10% of total tax revenue. A salient feature of Kenyan tax structure is that domestic taxes (taxes on income, profit and capital gains, VAT on domestic goods and services) contribute three-quarters of total tax revenue. In contrast to most countries in the region, taxes on imports contribute less than 25% of total tax revenue. The reliance on consumption taxes decreases, a trend consistent with the level development. Table 5: Kenya Composition of tax revenue, 2007/2008-2013/2014 (KSh millions) 2007/08 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 %Tax rev. Gains 165,078.00 194,154.50 219,496.84 272,263.87 328,908.78 383,086.04 449,590.07 49.31 PAYE 85,953.00 110,164.81 121,524.51 144,267.92 174,774.70 199,847.16 249,872.80 27.40 79,125.00 83,989.69 97,972.33 127,995.95 154,134.08 173,238.88 199,717.27 21.90 331.90 327.52 269.37 352.10 490.80 653.73 0.00 0.00 111,904.51 126,854.07 141,970.70 171,880.75 176,386.07 184,916.31 232,630.32 25.51 58,277.00 66,216.49 78,859.16 90,211.14 81,495.51 90,713.83 107,737.35 11.82 53,627.51 60,637.58 63,111.53 81,669.61 94,890.56 94,202.48 124,892.97 13.70 good and services 80,736.09 93,051.89 99,335.01 108,701.54 105,771.60 114,821.86 125,363.91 13.75 Excise taxes 61,905.51 69,872.12 74,112.08 80,566.54 78,884.26 85,660.29 102,029.10 11.19 transactions 45,857.70 49,094.03 57,205.80 66,670.45 76,473.85 81,812.59 94,232.51 10.33 Customs duty 32,944.35 36,180.60 41,271.12 46,271.12 51,711.78 57,649.68 67,554.64 7.41 trade transactions 12,913.42 12,913.12 15,934.69 20,598.64 24,162.91 24,162.91 26,677.87 2.93 Total Tax Revenue 408,444.66 468,151.70 523,633.34 626,668.74 695,887.71 763,828.34 911,803.70 100.00 Taxes on Income, Profit and Capital Corporation Income Tax Taxes on property Value Added Tax (VAT) VAT on domestic goods and services VAT on imported goods and services Taxes on other Taxes on International Trade Other taxes on international Source: Kenya Economic Surveys (2014, 2015 and 2016) | 157 |