[Kenya] Mbadi assures that PAYE will be cut despite delays

In Kenya, Treasury Cabinet Secretary John Mbadi has assured workers that the government remains committed to reducing Pay As You Earn (PAYE) tax despite delays in the proposal’s implementation, Capital FM reports.

Commenting on the matter during a Citizen TV interview, Mr Mbadi stated that the proposal to lower PAYE originated from the government, adding that discussions on its implementation will begin immediately.

“This suggestion about Pay As You Earn actually came from the government - this proposal. And we are going to put across to Kenyans. In fact, that is one of the assignments I’m going to start on immediately, on the discussion on how to reduce taxes on Pay As You Earn,” he said.

“And we are committed as a government to do this. So it is not that we are ignoring Kenyans. We are going to make sure it is actualised.”

Mr Mbadi said the proposal will be subjected to public participation before being introduced through legislation.

The government’s proposal reportedly seeks to exempt employees earning Sh30,000 and below from paying PAYE, while reducing tax rates for those earning up to Sh50,000 to help cushion low-income earners from the high cost of living.

The Kenya Bankers Association (KBA) has meanwhile proposed a 5 percentage point reduction in PAYE across all income bands, together with a cap of 30 per cent for the highest tax bracket.

According to the KBA, the proposal would put an estimated Sh28.1 billion into salaried workers’ wallets, boost consumer spending, create around 36,000 jobs annually, and increase economic output by Sh210 billion.

Source: Capital FM

(Quotes via original reporting)

In Kenya, Treasury Cabinet Secretary John Mbadi has assured workers that the government remains committed to reducing Pay As You Earn (PAYE) tax despite delays in the proposal’s implementation, Capital FM reports.

Commenting on the matter during a Citizen TV interview, Mr Mbadi stated that the proposal to lower PAYE originated from the government, adding that discussions on its implementation will begin immediately.

“This suggestion about Pay As You Earn actually came from the government - this proposal. And we are going to put across to Kenyans. In fact, that is one of the assignments I’m going to start on immediately, on the discussion on how to reduce taxes on Pay As You Earn,” he said.

“And we are committed as a government to do this. So it is not that we are ignoring Kenyans. We are going to make sure it is actualised.”

Mr Mbadi said the proposal will be subjected to public participation before being introduced through legislation.

The government’s proposal reportedly seeks to exempt employees earning Sh30,000 and below from paying PAYE, while reducing tax rates for those earning up to Sh50,000 to help cushion low-income earners from the high cost of living.

The Kenya Bankers Association (KBA) has meanwhile proposed a 5 percentage point reduction in PAYE across all income bands, together with a cap of 30 per cent for the highest tax bracket.

According to the KBA, the proposal would put an estimated Sh28.1 billion into salaried workers’ wallets, boost consumer spending, create around 36,000 jobs annually, and increase economic output by Sh210 billion.

Source: Capital FM

(Quotes via original reporting)