Parliament approves tax relief bill

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Speaker Justin Muturi during a media briefing in his office in Parliament.PHOTO/ COURTESY

• On March 25, Uhuru directed the Treasury to offer 100 per cent tax relief for persons earning a gross income of Sh24,000.

The National Assembly on Wednesday evening approved the Tax Laws (Amendment) Bill, 2020, paving the way for 100 percent tax relief to employees earning less than Sh 24,000.

The approval comes 29 days since President Uhuru Kenyatta made the directive.

The tax cuts are a relief to Kenyans who are burdened by the dwindling economy as caused by the coronavirus pandemic.

Those earning above Sh24,000 will now pay a maximum of 25 per cent down from 30 per cent.

On March 25, Uhuru directed the Treasury to offer 100 per cent tax relief for persons earning a gross income of Sh24,000.

Pay As You Earn (PAYE) will also be reduced from 30 per cent to 25.

“There will be a reduction of the income tax rate from its maximum of 30 to 25 per cent,” he said.

Uhuru said a reduction of corporation tax will be from 30 per cent to 25 per cent.

“There will also be a reduction of the turnover tax rate from three per cent to one percent,” he said.

Uhuru also suspended the listing on CRB of any persons in micro small or medium enterprises whose loan accounts were due or in arrears effective April 1.