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BY KORIR JUMA,NAIROBI,25TH MARCH,2020-President Uhuru Kenyatta has ordered the National Treasury to move to Parliament and implement a raft of changes including relief on employee tax and value added tax (VAT) as the government delivers its stimulus package to the economy.
“In recognition of the extra-ordinary nature of this global tragedy and its enormous local effects, and conscious of the solemn duty of the Government to guarantee the enjoyment of social, civil and economic rights; my Administration has made and will continue to make targeted state interventions to cushion every Kenyan from shocks arising from Covid-19,” President Kenyatta said in a televised address to the nation on Wednesday.
Among the raft of measures incorporated in the presidential decree include the order on a 100 per cent tax waiver for individuals with incomes lesser than Ksh.24, 000 and the reduction of the Pay as You Earn (PAYE) tax rate to 25 per cent from 30 per cent.
Further the President has ordered for the reduction of resident income tax/Corporation tax to 25 per cent from 30 per cent and the reduction of the turnover tax rate (TOT) from the current three percent to one per cent.
Moreover, the President has requested Treasury to appropriate a further Ksh.10 billion to the elderly, orphans and other vulnerable groups through the State’s cash transfer program to cushion the group from adverse economic effects.
“I recognize the anxiety that this pandemic has caused millions of Kenyan families; fearful of what the future may hold for them and their children, and the possibility of job losses and loss of income weighing heavily on their minds,” President Kenyatta added.
Further to the raft of measures assigned to the National Treasury, the President has requested for the temporary suspension of the listing with Credit Reference Bureaus (CRBs) of any person, small and medium enterprise (SME) and corporate entity whose loan account fall overdue or is in arrears, effective April 1.