The move is in line with Treasury’s past trend of not raising taxes in an election year when the sitting president is seeking re-election.
KRA is expected to raise Sh1.7 trillion in the fiscal year beginning July, up from Sh1.4 trillion in this period ending June.
The Treasury has ruled out any tax increases in the Budget set to be unveiled on Thursday next week, offering reprieve to heavily burdened taxpayers.
Geoffrey Mwau, the director general in charge of Budgetary, Fiscal and Economic Affairs, Thursday sought to allay fears that the ballooning budget and the sharp increase in revenue targets for the taxman would result in tax increases.
This is in line with Treasury’s past trend of not raising taxes in an election year when the sitting president is seeking re-election.
The Kenya Revenue Authority (KRA) is expected to raise Sh1.7 trillion in the fiscal year beginning July, up from Sh1.4 trillion in this period ending June.
“I have seen stories saying Kenyans should brace for tax increases. No, this is not the case,” Dr Mwau said yesterday at a pre-budget briefing in Nairobi.
Treasury PS Kamau Thugge also sought to calm taxpayers nerves when he stated that the ongoing review of the Income Tax Act will not result in higher pay-as-you-earn taxes.
“We hope to finish shortly. We are not expecting to raise tax rates. We actually lowered the rates last year and widened the bands,” Dr Thugge said.
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