It reduced corporate tax rate from 30 per cent to 25 per cent; reduced the individual income tax rate from 30 per cent to 25 per cent and additionally reduced the Value Added Tax from 16 per cent to 14 per cent. For starters, only a small percentage of Kenyans earn a monthly salary, which means that only this small percentage pays income tax. Two years ago, Uganda sought to expand its tax revenue by introducing ‘over-the-top tax, commonly known as the social media tax. In addition, Sweden earns substantial tax revenue from carbon tax, a direction that Kenya is yet to follow. Kenya needs to seriously explore the tax revenue opportunities that carbon tax and energy tax will unlock.

Source: Standard Digital January 02, 2021 21:00 UTC