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New Tax Bands by KRA
Rank: Member Joined: 6/30/2008 Posts: 63
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WE'll be having new tax brackets from June this year. The lowest bracket will start at a higher income and the bands will be wider. Info courtesy of The Standard
This is most welcome. IMHO, the result will be higher disposable incomes. consequently the prices of most items will go up resulting in Demand-driven inflation.
Economists. how do we avoid inflation that may result from this govt action.
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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@Fuchu, Kindly give us figures......but good move.The money that goes to taxes....aiiii!! Nothing great was ever achieved without enthusiasm.
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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@Fuchu, I dug this.... BD LinkLow income group looks like the beneficiary......and the 30% tax apply at 60K....Hell...!!Anyone earning below 200K does not deserve to pay this 30%. Nothing great was ever achieved without enthusiasm.
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Rank: Member Joined: 4/25/2008 Posts: 192 Location: Nairobi
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For a person earning over 120K, the difference will be about Kshs9,500. Itari muting'oe ihuragwo ngi ni Ngai
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Two corrections: 1] KRA does NOT fix tax bands. that is the job of Minister for Finance; usually done during the budget 2] Tax bands are NEVER change mid year. Even though changes are usually announced during the budget in June, the effective date is always 1st January of the following year. Nevertheless; a change is way overdue. I can't remember the last time there was an adjustment...could it be close to a decade ago? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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On second thought, why do we exempt low income earners from income tax? Isn't it unfair to deny them an opportunity to contribute to national development? After all, the consume the largest proportion of government services - hospitals, schools, etc Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 1/7/2010 Posts: 1,279 Location: nbi
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Mukiha-that is what is called a progressive tax system... The Governor of Nyeri - 2017
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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When was the last time the 'personal relief' was revised?
The Kshs1,162 is a joke.What is the relief based on?
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Wa_ithaka wrote:Mukiha-that is what is called a progressive tax system... Whose PROGRESS? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Chaka wrote:When was the last time the 'personal relief' was revised?
The Kshs1,162 is a joke.What is the relief based on? This comes to about Sh38 per day. It is intended to remove low-income people from taxation. Sh38 is not a small amount in country where half the population lives on less than sh80 a day. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Hello Joined: 12/8/2014 Posts: 4
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Current tax brackets - http://www.calculator.co...-income-tax-calculator/ as per the Kenya Revenue Authority PAYE Guide of 2009.
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Rank: Elder Joined: 6/8/2013 Posts: 2,517
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Chaka wrote:When was the last time the 'personal relief' was revised?
The Kshs1,162 is a joke.What is the relief based on? our tipping culture  you (KRA ) take a sumptuous dinner and give the waiter a tip (waiver ) "ππ‘KQ makes money for everyone except the shareholder ππ " overheard in Wazua
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Njung'e wrote:@Fuchu, I dug this.... BD LinkLow income group looks like the beneficiary......and the 30% tax apply at 60K....Hell...!!Anyone earning below 200K does not deserve to pay this 30%. "30% tax apply from 60k" Was this mere optimism? The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Chaka wrote:When was the last time the 'personal relief' was revised?
The Kshs1,162 is a joke.What is the relief based on? The amount of relief is related to tax brackets structure and more so the minimum taxable income which is about 10*1,162/=. The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Njung'e wrote:@Fuchu, I dug this.... BD LinkLow income group looks like the beneficiary......and the 30% tax apply at 60K....Hell...!!Anyone earning below 200K does not deserve to pay this 30%. I ncome Groups:Old &New Classification. Lower Income, New: 0 -23,671 Old: 0 - 10,000 Middle Income, New: 23,672-119,999 Old: 10,001- 40,000 Upper Income, New: > 120,000 Old: > 40,000 The opposite of courage is not cowardice, it's conformity.
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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jerry wrote:Njung'e wrote:@Fuchu, I dug this.... BD LinkLow income group looks like the beneficiary......and the 30% tax apply at 60K....Hell...!!Anyone earning below 200K does not deserve to pay this 30%. I ncome Groups:Old &New Classification. Lower Income, New: 0 -23,671 Old: 0 - 10,000 Middle Income, New: 23,672-119,999 Old: 10,001- 40,000 Upper Income, New: > 120,000 Old: > 40,000 wef when? is the tax going to lower? Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Veteran Joined: 12/8/2009 Posts: 975 Location: Nairobi
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Boris Boyka wrote:jerry wrote:Njung'e wrote:@Fuchu, I dug this.... BD LinkLow income group looks like the beneficiary......and the 30% tax apply at 60K....Hell...!!Anyone earning below 200K does not deserve to pay this 30%. I ncome Groups:Old &New Classification. Lower Income, New: 0 -23,671 Old: 0 - 10,000 Middle Income, New: 23,672-119,999 Old: 10,001- 40,000 Upper Income, New: > 120,000 Old: > 40,000 wef when? is the tax going to lower? Any tax expert in the house? You will know that you have arrived when money and time are not mutually exclusive "events" in you life!
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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XSK wrote:Boris Boyka wrote:jerry wrote:Njung'e wrote:@Fuchu, I dug this.... BD LinkLow income group looks like the beneficiary......and the 30% tax apply at 60K....Hell...!!Anyone earning below 200K does not deserve to pay this 30%. I ncome Groups:Old &New Classification. Lower Income, New: 0 -23,671 Old: 0 - 10,000 Middle Income, New: 23,672-119,999 Old: 10,001- 40,000 Upper Income, New: > 120,000 Old: > 40,000 wef when? is the tax going to lower? Any tax expert in the house? The basic understanding is that the lower income earners will gain. For the top earners this will largely depend on tax rates. Should we retain the tax rates of 10%, 15%, 20%, 25% & 30% everyone gains. However if a higher tax rate of say 40% is introduced, this may drain some portion of higher income earners' cash position depending on what fraction of their income falls in the revised highest band. Time is money, so money is time. Money saved is time gained in reverse! Money stores your lifeβs energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Boris Boyka wrote:jerry wrote:Njung'e wrote:@Fuchu, I dug this.... BD LinkLow income group looks like the beneficiary......and the 30% tax apply at 60K....Hell...!!Anyone earning below 200K does not deserve to pay this 30%. I ncome Groups:Old &New Classification. Lower Income, New: 0 -23,671 Old: 0 - 10,000 Middle Income, New: 23,672-119,999 Old: 10,001- 40,000 Upper Income, New: > 120,000 Old: > 40,000 wef when? is the tax going to lower? If you open the link there is no indication of the story timeline. However it's like the plan was shelved along the way. The opposite of courage is not cowardice, it's conformity.
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