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New Tax Bands by KRA
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fuchu
#1 Posted : Wednesday, May 12, 2010 8:52:07 PM
Rank: Member

Joined: 6/30/2008
Posts: 63
WE'll be having new tax brackets from June this year. The lowest bracket will start at a higher income and the bands will be wider. Info courtesy of The Standard

This is most welcome. IMHO, the result will be higher disposable incomes. consequently the prices of most items will go up resulting in Demand-driven inflation.

Economists. how do we avoid inflation that may result from this govt action.
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Njung'e
#2 Posted : Friday, May 14, 2010 9:28:30 AM
Rank: Elder

Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
@Fuchu,
Kindly give us figures......but good move.The money that goes to taxes....aiiii!!
Nothing great was ever achieved without enthusiasm.
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Njung'e
#3 Posted : Friday, May 14, 2010 9:44:24 AM
Rank: Elder

Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
@Fuchu,

I dug this....

BD Link

Low income group looks like the beneficiary......and the 30% tax apply at 60K....Hell...!!Anyone earning below 200K does not deserve to pay this 30%.
Nothing great was ever achieved without enthusiasm.
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  | | Edit by moderator: Friday, May 14, 2010 11:41 AM | Reason: Not specified
milken
#4 Posted : Friday, May 14, 2010 1:18:46 PM
Rank: Member

Joined: 4/25/2008
Posts: 192
Location: Nairobi
For a person earning over 120K, the difference will be about Kshs9,500.
Itari muting'oe ihuragwo ngi ni Ngai
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mukiha
#5 Posted : Friday, May 14, 2010 8:10:57 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
Two corrections:

1] KRA does NOT fix tax bands. that is the job of Minister for Finance; usually done during the budget

2] Tax bands are NEVER change mid year. Even though changes are usually announced during the budget in June, the effective date is always 1st January of the following year.

Nevertheless; a change is way overdue. I can't remember the last time there was an adjustment...could it be close to a decade ago?
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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mukiha
#6 Posted : Monday, May 17, 2010 7:12:08 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
On second thought, why do we exempt low income earners from income tax? Isn't it unfair to deny them an opportunity to contribute to national development? After all, the consume the largest proportion of government services - hospitals, schools, etc
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Wa_ithaka
#7 Posted : Monday, May 17, 2010 7:34:33 AM
Rank: Veteran

Joined: 1/7/2010
Posts: 1,279
Location: nbi
Mukiha-that is what is called a progressive tax system...
The Governor of Nyeri - 2017
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Chaka
#8 Posted : Monday, May 17, 2010 7:44:57 AM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
When was the last time the 'personal relief' was revised?
The Kshs1,162 is a joke.What is the relief based on?
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mukiha
#9 Posted : Monday, May 17, 2010 8:01:08 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
Wa_ithaka wrote:
Mukiha-that is what is called a progressive tax system...

Whose PROGRESS?
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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mukiha
#10 Posted : Monday, May 17, 2010 8:06:28 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
Chaka wrote:
When was the last time the 'personal relief' was revised?
The Kshs1,162 is a joke.What is the relief based on?

This comes to about Sh38 per day. It is intended to remove low-income people from taxation. Sh38 is not a small amount in country where half the population lives on less than sh80 a day.

Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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