President Uhuru has directed the treasury to offer 100 per cent tax relief for persons earning a gross income of Sh24000.
The higest tax bracket has been reduced from 30 per cent to 25.
“There will be a reduction of the income tax rate from its maximum of 30 to 25 per cent,” he said.
Uhuru said a reduction of corporation tax from 30 per cent to 25 per cent.
“There will also be a reduction of the turnover tax rate from three per cent to one percent,” he said.
Uhuru also suspended the listing on CRB of any persons in micro small or medium enterprises whose loan accounts were due or in arrears effective April 1.
“..this is to protect jobs for our people and uncertainty for employers..” he said.
Here is the summary of goodies:
TOP MEASURES ANNOUNCED BY PRESIDENT UHURU KENYATTA IN DEALING WITH CORONAVIRUS
1. 100 % Tax Relief for persons earning gross monthly income of up to Sh24, 000.
2. Reduction of Income Tax Rate (Pay-As-You-Earn) from 30% to 25%.
3. Reduction of Resident Income Tax (Corporation Tax) from 30% to 25%
4. Reduction of the turnover tax rate from the current 3% to 1% for all Micro, Small and Medium Enterprises (MSMEs).
5. An additional Sh10 Billion to the elderly, orphans and other vulnerable members of our society through cash-transfers.
6. Temporary suspension of the listing with Credit Reference Bureaus (CRB) effective April 1.
7. Immediate reduction of the VAT from 16% to 14%, effective 1st April.
8. All Ministries and Departments to pay at least 13 Billion of the verified pending bills within three weeks.
9. Payment by KRA of all verified VAT refund claims amounting to Sh10 Billion within 3 weeks.
10. Sh1 B from the Universal Health Coverage to be used in recruiting additional health workers.
11. Salary reduction as follows: The President & Deputy President 80%; Cabinet Secretaries – 30%; Chief Administrative Secretaries – 30%; Principal Secretaries – 20%
12. All State and Public Officers with pre-existing medical conditions and/or aged 58 years and above, serving in Job Group S and below or their equivalents, take leave or forthwith work from home excluding personnel in the security sector and other essential services
13. Lowering of the Central Bank Rate (CBR) to 7.25% from 8.25%.
14. Lowering of the Cash Reserve Ratio (CRR) to 4.25 percent from 5.25 percent so as to provide additional liquidity of Sh35 Billion to commercial banks to directly support borrowers.
15. Effective Friday, 27th March, 2020; a Daily Curfew from 7 p.m. to 5 a.m.
16. Management of the Kenya Ferry Services is vested in the National Police Service, the Coast Guard and the National Government Administration Officers (NGAO).