- The National Treasury has hinted at more changes in the country’s taxation regime, this time targeting different income brackets.
The proposal by President William Ruto to exempt Kenyans
earning Ksh.32,000 and below from taxation is aimed at increasing the
disposable income of low-income households, even as the government plans to
review other income bands.
The National Treasury has hinted at more changes in the
country’s taxation regime, this time targeting different income brackets.
According to Treasury Cabinet Secretary John Mbadi, the review
of personal taxes under Pay As You Earn (PAYE) for those earning up to
Ksh.32,333 is the first of several measures aimed at improving household
incomes.
“If we give this additional relief, it means someone earning
Ksh.50,000 will now be much better off than before SHA and the Housing Levy. At
Ksh.596, you’ll get more. A person earning Ksh.60,000 will get less still by
Ksh.473. If you’re earning Ksh.80,000, you’ll pay Ksh.300 more than before SHA
and the Housing Levy,” said Mbadi.
Mbadi also indicated that tax relief for low-income households
and exemptions on land transactions worth less than Ksh.1 million could be
accompanied by higher taxes on high-value property acquisitions.
“Those who are buying land worth Ksh.1 million, we have said
we will not charge you stamp duty. Those who are in rural areas, we might go a
step further. We are still looking at the figures, but if you are buying Ksh.50
million worth of land, you pay more. You will pay more. You are not going to
pay even four per cent; you will pay a higher percentage. We will work out the
figure,” he added.