Kenya Set to Grant Tax Relief for Low- and Middle-Income Earners
The tax relief program will create a significant advancement in the government’s ongoing attempt to reduce economic pressure on workers while enhancing living conditions for low- and middle-income Kenyan citizens.
Treasury Cabinet Secretary John Mbadi. Photo/Courtesy
By Ruth sang
The Kenyan government plans to give tax relief to low- and middle-income workers because they want to reduce the financial burden which results from increased living expenses. Treasury Cabinet Secretary John Mbadi informed the public that President William Ruto and he had developed a tax law proposal which would benefit workers who receive salaries.
At the Budget and Privatisation Public Engagement Forum which took place on Monday at Meru National Polytechnic and included stakeholders from the Upper Eastern region, Mbadi announced government plans to increase disposable income for Kenyans who earn modest salaries.
Mbadi stated that President and he reached agreement about granting financial relief to low-income workers. I am now preparing to present a proposal to Parliament on the Tax Law Amendment Bill once it resumes,” Mbadi said.
The proposed measures will entirely exempt employees who earn below Sh30,000 each month from income tax obligations. Employees who earn between Sh30,000 and Sh50,000 will experience a tax benefit because their Pay-As-You-Earn tax rate will be lowered from 30% to 25%.
The initiative aims to provide financial assistance to households which experience the most severe impacts from inflation and increased living expenses. The government plans to boost consumer spending through higher take-home pay which will lead to increased economic activity.
Mbadi explained that the tax policy changes represent a complete effort to develop tax systems which will benefit average Kenyans while promoting balanced economic growth. The amendments will enable households to allocate additional funds towards essential expenses such as food and education and healthcare.
The Treasury prepares the legal framework required to present the Tax Law Amendment Bill to Parliament, where lawmakers will examine and discuss the proposal before its execution.
The tax relief program will create a significant advancement in the government’s ongoing attempt to reduce economic pressure on workers while enhancing living conditions for low- and middle-income Kenyan citizens.
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