Tax relief announced by President Uhuru Kenyatta last week to cushion Kenyans and companies from the effects of coronavirus outbreak is not temporal; it is permanent, Treasury CS Ukur Yattani has said.
In his tax cut package to cushion the economy from collapsing, Uhuru imposed 100 tax relief on salaries by Kenyans earning less than 24,000. He also directed that income tax be reduced to 25% from 30% for all employees earning more than 24,000.
Value Added Tax was reduced to 14 percent from 16 percent while micro, small and medium enterprises (MSMEs) had their turnover tax cut from 3 percent to 1 percent effective April 1.
This, Yattani says, is meant to support the growth of all sectors once the coronavirus pandemic is contained while insisting that it is a permanent decision.
“Those measures are permanent and not for three months,” the Treasury CS told Business Daily during an interview.
He said a Bill clearly explaining all these changes will be presented to the National Assembly for approval.
“(They) will be forwarded (to the National Assembly) before the end of the day,” said Mr Yatani.
28 Senators held a sitting on Tuesday to discuss the proposals whole MPs are expected to have a sitting before April 7 for the same.
This comes as more COVID-19 cases continue to be recorded. On Tuesday, nine more cases were confirmed putting the total number at 59.