Security guards are among those who will benefit from the latest tax adjustment by the Ministry of Treasury. [Photo/Softkenya]
The government has moved to cushion Kenyans from the high cost of living by lowering the tax burden from this month.
The latest review will see a reduction of the Pay-As-You-Earn (PAYE) and monthly personal relief (MPR), which means many Kenyans will take home more money depending on their salary levels.
The review, which is in line with what treasury promised in last year’s budget, will also see the taxpayers’ monthly personal relief increase from Sh1,280 to Sh1,408.
The changes will yield monthly tax savings ranging from Sh184 to Sh667.5 depending on salary.
Most people who will benefit from this tweaking of the tax bands include security guards, waiters, messengers, and cooks.
According to Treasury CS Henry Rotich, the new system is meant to benefit low-income earners while reducing income inequality.
Employees with lower salaries will get smaller tax cuts starting, for instance, at Sh184 per month for those earning Sh20, 000 whose tax will fall to Sh977 from Sh1,161 after the relief is deducted.