Mbadi said Treasury could not skip public participation because doing so would leave the proposed changes open to legal challenges. He said the government would first allow Kenyans to give their views before the proposals are turned into a Bill for consideration by Parliament.
By Bradley BosireIncome tax has taken the biggest cut, with the projected collection reduced by Sh78.6 billion from Sh1.384 trillion to Sh1.305 trillion. The income tax category, which includes corporate taxes paid on profits as well as Pay As You Earn (PAYE) deducted from workers' salaries and wages, remains the largest source of the expected revenue decline.
By Maureen KinyanjuiAccording to TSC, the issue arose following the implementation of amendments introduced under Section 7 of the Tax Laws (Amendment) Act, 2024, which changed Section 15(2) of the Income Tax Act by exempting employee contributions to the Affordable Housing Levy (AHL) Fund and the Social Health Insurance Fund (SHIF) from income tax
By Chrispho OwuorUnder the revised law, individual taxpayers will be required to file their income tax returns by the last day of the fourth month after the end of their year of income. For most individuals whose year of income ends on December 31, the filing deadline will now be April 30.
By Maureen KinyanjuiThe Kenya Bankers Association says real incomes have fallen 10.7%–12% over five years and proposes a uniform 5% PAYE reduction across all income bands to boost purchasing power, GDP, jobs and MSME lending.
By Chrispho OwuorOdhiambo also raises issues with the proposed tax treatment of mitumba imports. The Bill introduces a new Section 12H in the Income Tax Act, which assumes a 5% profit on customs value and requires payment before goods are released by the Kenya Revenue Authority. She says this means a trader bringing in goods worth Sh1 million would pay Sh50,000 whether or not they make profit or loss, calling the approach unfair.
By Chrispho OwuorKRA explained that the draft regulations were developed by the Commissioner General acting on behalf of the Cabinet Secretary for the National Treasury, following the requirements set out under the Statutory Instruments Act, Cap. 2A.
By Chrispho Owuor