Dec, 4th 2020 – Treasury cabinet Secretary Ukur Yatani now says the country will resume its pre-Covid -19 taxes on VAT and income tax in January 2021. In a statement to newsrooms, Yatani added that the government revenue collection has been affected negatively by the tax relief measures but at the same time indicated that it was a relief to many Kenyans.
The corporate tax shall revert to 30% from 25% while the individual income tax reverts to 30% from its current 25% and Value Added Tax rate (VAT) shall revert back to 16% from the current 14%. Low income earners who receive a salary of sh24,000 or below will retain 100% tax exemption.
The covid-19 tax relief has been running for seven months now to support kenyan businesses as well as provide critical relief to the most vulnerable in society as they come up with mechanism to cope with the realities of the pandemic.
The government has however stated that it has set aside a roll out system that will cater to the vulnerable citizens. They shall be cushioned under the Ksh. 58.1 billion economic stimulus programme (ESP) which include the Kazi mtaani among other projects.
Yatani has said that in spite of the pandemic’s effect it is noteworthy that the National Treasury and planning has continued to maintain macro-economic stability as evidenced by the prevailing low and stable inflation and interest rates as well as a competitive exchange rate.