The Members of Parliament are expected to convene a special sitting to make the final ruling on the planned reversal of the tax rates effected to cushion Kenyans from COVID-19 woes.
The lawmakers will be considering the Tax Laws Bill No.2, 2020 (Amendment).
According to a gazette notice by House Speaker Justin Muturi, the Bill contains the proposed reversal of tax reversals and the tabling of the Value Added Tax Order, 2020. (Amendment).
“Pursuit to the provision of standing order 29(3) of the National Assembly, it is notified for the information of members and the general public that special sittings shall be held on December 22 commencing in the chamber at 10 am to2:30 pm respectively.” the notice reads.
The lawmakers are on recess until February 9, 2021.
If the Bill will be adopted, then the pay as you earn (PAYE), corporation tax and Value Added Tax (VAT) will be reversed.
The taxman will start deducting 30per cent Pay-As-You-Earn tax as opposed to the current 25 per cent. In a bid to raise its domestic revenue, the government will also look to revert to the previous 16 per cent Value Added Tax from current 14 per cent potential affecting prices basic commodities.
Companies will now be paying the corporate tax of 30 per cent from the current 25per cent. The 100 per cent tax relief for persons earning a gross monthly income of up to Sh 24,000 will also be scrapped off.
Early this month, National Treasury Cabinet Secretary Ukur Yatani said tax relief measures would expire on December 31, 2020.
