Treasury Cabinet Secretary Ukur Yatani has announced that taxes cut during the start of the pandemic will revert to normal from January 1, 2021.
However, the CS said those earning below Sh24,000 will continue enjoying 100% tax relief by exempting them from Pay As You Earn (PAYE) tax.
The CS said that effective from January 1, 2021, the Corporate Tax rate will revert to 30 per cent from the current 25 per cent.
He added that it is important to note that these are not new tax rates but just the return of the prevailing tax rates.
”It is important to note that these are not new tax rate, but just the return to prevailing tax rates before the onset of the pandemic. This indeed within the knowledge of all stakeholders.” Says Ukur Yattani in a statement.
Among the measures, the government will continue to roll out interventions under the sh 58.1 billion Economic Stimulus Program (ESP) such as kazi mtaani to cushion vulnerable citizens and also emphasize the liquidity of businesses.
By Christabel Airo