Mercy Auma
Kenyans will have to wait much longer before the tax reductions that were announced by President Uhuru Kenyatta on March 25, 2020 take effect.
Uhuru announced 100 percent tax relief for people earning a monthly gross pay of up to Ksh24,000 with also a reduction of the income tax, Paye As You Earn (PAYE) rate from its maximum of 30 to 25 percent.
Consequently, the reductions will not take effect in April as Kenyans will have to wait longer for the bill to become a law.
Read: Relief For Kenyans As Gov’t Reduces PAYE Tax
According to a KRA representative who spoke to a local blog, Kenyans should continue using the previous rates until further communication.
“We are waiting for it to be enacted into law but that has not been done yet because Parliament has to ratify that. So we wait for it to be law. We urge Kenyans to use the previous rates till further communication,” he said.
Apparently, according to the taxman, the PAYE was a proposal that has to be deliberated by Parliament thus everything that the president says regarding taxation will follow suit.
“Please note the PAYE rate is now a bill that is yet to be assented to. Use the old rates until such a time when Parliament will pass the bill into law,” read a KRA tweet in a response to queries.
Read Also: 10 KRA Employees In Quarantine After Coming Into Contact With Coronavirus Positive Foreigners
During the March 25 press briefing, the Head of Stated noted that the reductions would take effect from April 1, 2020 adding that the move was necessitated by the prevailing Coronavirus (COVID-19) crisis that has grossly affected the economy.
Currently, businesses have been adversely affected and some companies have been forced to close down while others have slashed down their employees’ salaries.
The country has a total of 303 confirmed COVID-19 cases, 14 fatalities and 83 recoveries.
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