Low-income earners will continue to enjoy 100pc tax exemption indefinitely as National Treasury Cabinet Secretary Ukur Yatani reverts Value Added Tax (VAT)and Income tax to earlier rates before the outbreak of the COVID-19 pandemic.
Kenyan individuals who make less than Sh24,000 monthly will continue to enjoy full exemption from Pay-as-You-Earn (PAYE) tax in what CS Yatani says is aimed at cushioning low-income earners from the severe impact of the coronavirus economic fallout.
“This indeed increased tax relief for individuals from Kshs. 16,896 to Kshs. 28,000” said Yatani in a statement released Thursday.
The treasury will also continue to roll out interventions under the Sh58.1 billion Economic Stimulus Programme to cushion vulnerable groups and enhance liquidity in businesses.
Alongside these measures, the government will continue to roll-out interventions under the Sh58.1 billion economic stimulus programme such as Kazi Mtaani and others, to cushion vulnerable citizens and also enhance the liquidity of businessesUkur YataniLoading...
The Kenya Revenue Authority (KRA) is also toying with the idea of raising taxes on Kenyans earning more than Sh9 million per year up to 35 pc to recover from the reduced tax revenues of the pandemic.
The government is currently grappling with a bloated wage bill and ballooning loans, despite a review on the country’s ceiling.
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