The government could raise up to Sh13.4 billion per annum through the proposed introduction of a five percent withholding tax on the interest paid on new infrastructure bonds.
The Tax Laws (Amendment) Bill, 2024, which is currently undergoing stakeholder engagement proposes to amend the provison of paragraph 60 of the First Schedule of the Income Tax Act, which currently exempts interest income from all bonds used to mobilise funds for infrastructure projects from income tax.
