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Rotich hands workers income tax cut boost

Treasury secretary Henry Rotich. FILE PHOTO | NMG
Treasury secretary Henry Rotich. FILE PHOTO | NMG 

Kenyan workers are set to benefit from a slight reduction in their payroll taxes beginning this month when the pay-as-you-earn (PAYE) bands will be expanded by a further 10 per cent as promised in last year’s budget.

The income tax reforms that Treasury secretary Henry Rotich announced in his March 2017 budget speech will also increase taxpayers’ monthly personal relief (MPR) from Sh1,280 to Sh1,408.

The changes in PAYE bands and personal relief will yield monthly tax savings ranging from Sh184 to Sh667.5 depending on one’s salary.

This will be the second year running that the government has tweaked the tax bands, building on a similar 10 per cent expansion of the MPR and tax categories in January last year that resulted in savings of between Sh181 and Sh609 per month.