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Economy

Yatani mum on fate of corona tax cuts

Ukur Yatani
Treasury Secretary Ukur Yatani. FILE PHOTO | NMG 

The Treasury has remained noncommittal on the fate of the recent payroll and consumption tax cuts in the post-corona period, saying retaining them depends on the future impact on public revenues.

On Monday, Treasury secretary Ukur Yatani would not commit to keeping the tax reliefs beyond three months, saying the government needed time to review their impact.

“We are studying (the reliefs) because these tax expenditures will also depend on how much cooperation we get from Parliament. It is a matter that we are considering but we do not want to make any commitment at this stage,” he said.

Kenya has, effective April 1 cut income, sales and value-added taxes with a projection to lose Sh172 billion from with the hope to make up for the money by cancelling half of the Sh535 billion subsidies offered to businesses.

Mr Yatani said his policy was to focus on reducing taxes directly to the individual by cutting income tax so that they have more money to spend to stimulate consumption, which will in turn boost production.

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