New tax approach good but proceed with care

Times Tower in Nairobi, the Kenya Revenue Authority headquarters. FILE PHOTO | DENNIS ONSONGO | NMG

Kenya Revenue Authority’s plan to compute taxes item by item requires major human resources and logistical investment, which the taxman should be ready to address besides potential bottlenecks at border points.

The decision targets small traders who import merchandise in a pool and pay taxes per kilo – which at the moment attracts a duty of Sh200 per kilo for air cargo or Sh2.2 million for a 40-foot container brought in through the sea.

PAYE Tax Calculator

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