President Uhuru Kenyatta has announced a welcome stimulus package to address the impact of coronavirus on the economy.
He has directed the National Treasury to offer a 100 per cent tax relief for individuals with a gross income of up to Sh24,000. The relief will be effective next month subject to approval by Parliament.
This is as income tax, commonly known as Pay as You Earn (PAYE), has been reduced from 30 per cent to 25 per cent. Uhuru further announced a reduction of the resident income tax by the same margin from 30 to 25 per cent. The turnover tax has been reduced from 3 to 1 per cent.
The National Treasury was also ordered to reduce the Value Added Tax from 16 per cent to 14 per cent.