Kenyans in lowest tax bracket to be exempted from tax on bonus, benefits

Kenyans in the lowest tax band who earn Sh10,000 and above can now breathe a sigh of relief after the government in the budget proposed a waiver of taxes on bonuses, retirement benefits and overtime for workers who fall in that tax band.

Reading the 2016/17 budget at Parliament on Wednesday, Treasury CS Henry Rotich also proposed increasing the tax bands and reliefs by 10 per cent.

“These measures are meant to cushion the workers from the high cost of living and demonstrate our commitment to sharing the growth of our economy,” he said.

This move is expected to increase the spending power of households.

In his address, the CS noted the Kenya’s economy grew by 5.6 per cent in 2015, and is expected to grow by 6 per cent in 2016. This is against a growth of 3.1 per cent in the world economy and 3.1 per cent in Sub-Saharan Africa in 2015.

Tags:

taxes budget 2017/2016

Want to send us a story? Submit on Wananchi Reporting on the Citizen Digital App or Send an email to wananchi@royalmedia.co.ke or Send an SMS to 25170 or WhatsApp on 0743570000

Leave a Comment

Comments

No comments yet.

latest stories