Treasury removes 20pc excise tax on bank loans

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National Treasury building. FILE PHOTO | NMG

The Treasury has scrapped the 20 percent excise duty on bank loan fees, setting the stage for possible drop in the cost of credit to business and households.

The removal of the excise tax is contained in the Finance Bill and will see banks save up to Sh7 billion annually on taxes generated from fees charged on processing loans.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.