Treasury Secretary Ukur Yatani, on Thursday afternoon, is expected to announce to the nation a Sh3.2 trillion Budget for the year starting July 1 which will introduce new taxes on items like cooking gas and bread and a stimulus package to jumpstart an economy that is almost in recession.
Cooking gas will now cost more after it was moved from the old rate of tax-exempt to the 14 pc VAT bracket according to the proposed tax changes which are contained in the Finance Bill 2020,
Mr Yatani says the new taxes will mostly affect the upper class in the nation, he will be presenting his maiden Budget Statement at the National Assembly where he will push for the implementation of the new tax measures.
The tax measures that target the rich include elimination of tax reliefs for hiring helicopters, buying airplanes, tractors, and cookers. The government will also eliminate tax breaks for the importation of cars by civil servants working abroad.
A minimum tax of 1pc on company sales is also being introduced together with a digital tax of 1.5pc on sales of foreign tech companies with earnings from Kenya like Uber and Google. Yatani also seeks to have removal of relief for workers saving for homeownership.
Should parliament approve of the budget, The tax measures willtake effect in July and are meant to generate more revenue to fund the 2020-21 Budget.
The expanded Budget includes the Sh53.7 billion package to keep the country afloat as the coronavirus pandemic continues to destroy the livelihoods of Kenyans and everyone globally
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