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Why top earners are not yet off the hook



High earners and employees are worrisome after Finance Minister Henry Rotich announced the introduction of a new Income Tax Act to increase revenue.

This is due to the fact that different stakeholders have mixed reactions to Mr Rotich's on Thursday.

He said that the bill will be drafted and presented in Parliament next month. "There are many high-income workers who are not taxed properly while others are tax-exempt. We will check this soon, "Rotich told reporters in parliament.

"Do not expect big surprises, but we want to make the law more progressive with regard to the tax code."

According to the Income Tax Bill 201

8, the Kenyan revenue authority will deduct 10 percent of the first 147,580 Sh and 15 percent of the next 139,043 Sh from your pay slip.

Persons with an income of more than 9 million Sh per year have to cede 35 percent of their income to the taxman, and this earning 564,709 to 9 million Sh will transfer 30 percent. He still advised himself on the 35 percent number.

Meanwhile, Boda-Boda operators have reacted inconsistently to the proposed change in insurance rules requiring all drivers to have passenger and pedestrian coverage. [19659002] In Kisumu, operators welcomed the proposal and said it would help victims of accidents.

Kisumu County Boda Bodrum Riders co-operative union leader Willis Aketch said the victims, including the drivers, were forced to dig deeper into their pockets for lack of coverage. "Because it will be helpful to everyone, the idea is good," he said.

But Mr. Godfrey Omwenga, a Boda Boda cyclist in Kisii, said the move was punishable. "We in the Boda Boda sector are likely to suffer a lot. This will add to the difficulties we face as we are forced to comply with traffic regulations, "said Omwenga.

But Jane Mokeira, also in Kisii, praised the move, saying it would restore sanity in the industry.

Mr. Bramwel Litunya, a sales representative in Kisii, objected to the decision to tax services such as security, cleaning and fumigation, off-site catering, transportation, promotion, and marketing and advertising.

Mr. Rotich said this measure would improve compliance with the tax rules of the providers of these services. Mr. Litunya refused and said she would kill small businesses. "This is likely to have a negative impact on small business owners struggling to make ends meet," Litunya said.


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