The president in trying to jump start the economy this week gave a raft of measures and tax adjustments that are meant to give businesses and mwananchi cashflow.
Can the experts in the house break it down so that we understand what moves an individual/business needs to make to take advantage of the stimulus package.Wengi wetu tumeumia sana tangu 2017.
Basicaly we are being shafted as usual
Basically what is happening is that:
- If you are in business and have been witholding 16% as VAT on taxable goods and services ,it has now been revised downwards to 14%.
2.Turnover tax (Which was introduced in in finance act 2019 for business with less than 5M Revenue has been revised downwards from 3% to 1%.
3.PAYE has also been reduced, employees earning less than 24k are now exempt and the band with for the rest has changed from 30% to 25%.
- Corporate tax has also reduced from 30% to 25% depending on the year end of course.
5.VAT claims are also to be refunded by KRA with an option to offset with Tax liabilities.
I hope this helps.