Kenyans earning from Ksh36,000 might be looking into tax relief, if what the Chairperson of the Council of Economic Advisors, Dr David Ndii revealed on Wednesday, November 6, is anything to go by. Ndii alleged that the government will bump up the tax-free income band from the current Ksh24,000 to Ksh36,000.
Speaking during the NCBA Bank Economic Forum 2024, Ndii claimed that the government is looking to relieve Kenyans from taxes in the new move that he alleges was included in the Finance Bill 2024.
“The zero tax rate relief which is now at ksh24,000 we are taking it to Ksh36,000. I think this year. If you look at the tax bills that went out with the finance bill 2024 there was a proposal to take up that, I think it’s back in the sort of proposals we are making”, Ndii revealed.
He went on to reveal that the long-term plan is to increase the amount to Ksh45,000 after three years.
President William Ruto (centre), his deputy Rigathi Gachagua (second from left) and economic advisor David Ndii (left) engage in discussions during a retreat in Naivasha on February 21, 2024.
PCS
“In three years, by the end of this process that number will be around Ksh45,000,” Ndii continued.
According to the economist, the government is looking to give relief to the income and the people at the bottom.
“The more we are able to bring those who are not paying on board the more relief we will be able to give to those who are on the payroll,” Ndii continued.
Ndii however clarified that this relief will not be coming as quickly as Kenyan perceives revealing that as long as the country is still in the International Monetary Fund Program, cutting taxes would be a pipe dream.
“Let me refer to something I said before, when you are in an IMF program you are in the receivership, there is no relief, you are only going to get relief when you get out of receivership.”
“What we are doing now is just the structural things. We can’t keep going back to the question, ‘How much relief do we provide at this point in time’. At this point in time, zero”, Ndii clarified.
His sentiments come amid the reintroduction of aspects of the Finance Bill as the government seeks to raise at least ksh174 Billion.
He noted that the government is looking at implementing key reforms aimed at spreading the tax burden which falls proportionally on salaried Kenyans.
President William Ruto gives an address during the 2022 Taxpayers’ Day at the Kenyatta International Conventional Centre on Friday, October 28, 2022.
PCS
