Cassey Tash
Lister
Treasury CS Ukur Yatani has announced in a statement that the country will return to the pre-Covid-19 taxes on VAT and Income Tax effective January 1, 2021, adding that this move will enable the implementation of government budget.
The CS has also announced that the government will continue cushioning Kenyans earning less than Sh24,000 through 100% tax relief.
The tax relief was implement in April this year after President directed the Treasury to do so inorder to cushion Kenyans during the pandemic period.
The VAT was reduced from 16% to 14% - which will now revert to 16% from January 1, 2021
Corporate tax rate was reduced to 25% from 30% and Individual income tax was also reduced to 25% from 30%.
The government had last month released an economic recovery strategy post Covid-19 and a proposal to an Unemployment Insurance Fund was brought up in which employed Kenyans will be required to contribute 1% of their income to the Fund in order to cushion unemployed Kenyans while Employers will also contribute 1% bringing the total to 2%
The President in his address to the country on Covid-19 situation extended the Nationwide curfew to January 3, 2021.
The CS has also announced that the government will continue cushioning Kenyans earning less than Sh24,000 through 100% tax relief.
The tax relief was implement in April this year after President directed the Treasury to do so inorder to cushion Kenyans during the pandemic period.
The VAT was reduced from 16% to 14% - which will now revert to 16% from January 1, 2021
Corporate tax rate was reduced to 25% from 30% and Individual income tax was also reduced to 25% from 30%.
The government had last month released an economic recovery strategy post Covid-19 and a proposal to an Unemployment Insurance Fund was brought up in which employed Kenyans will be required to contribute 1% of their income to the Fund in order to cushion unemployed Kenyans while Employers will also contribute 1% bringing the total to 2%
The President in his address to the country on Covid-19 situation extended the Nationwide curfew to January 3, 2021.
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