High income earners could be be subjected to taxation of up to 35 percent in a new Bill by the National Treasury.
Treasury Cabinet Secretary Henry Rotich in a newly published Income Tax Bill says the move is aimed at increasing income tax revenues by Sh68 billion. The increased tax rate targets anyone taking home more than Sh9 million a year.
This means that anyone with a monthly salary of Sh750,000 and above will be subjected to the new high taxation. Also targeted in the proposed changes are large corporations with a taxable income of more than Sh500 million.
The Bill could see capital gains tax rate increase from five per cent to 20 per cent should the Members of Parliament approve it. Deloitte tax partner Fred Omondi said the proposal is likely to be hailed as progressive since there has been calls to tax high-income earners more.
“It is progressive in the sense that it is targeting high-income earners, while the higher CGT is targeting wealthier segments of society, who own property.”
“Quite a number economies, especially in the developed world, have rates above 40 per cent for top earners,” said Omondi.
Ok move ‘coz it gona force…
Ok move ‘coz it gona force thugs in government to fork out more (MP’s, Ministers, county authorities etc..who else earns 750K, anyway) but then they’ll turn to the corrupt system to steal more now that they’ll have a “justification” But let’s first see whether they gona pass the bill in the first place
You are right@Mlachake…
You are right@Mlachake.Havent we seen each time Mpigs salary is reduced or benefits slashed;they come out with vegence doubling and quadrupling their benefits