Treasury’s income tax target revision unrealistic, say analysts

The National Treasury building in Nairobi. FILE PHOTO | NMG

The Treasury’s upward revision of the expected revenue from individual income tax for the fiscal year is unrealistic owing to the coronavirus crisis hit on monthly wages and jobs, analysts have said.

The National Treasury has revised upwards the Pay As You Earn (PAYE) revenue target by Sh140.6 billion, banking on the reinstatement of the PAYE tax rate to 30 percent from 25 percent, effective from January 1.

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