The government has introduced proposed income tax amendments for the financial year 2024/2025, which include a significant increase in Pay As You Earn (PAYE) for certain groups of employees, raising it to 58% of their gross salaries.
Currently, employees earning 10 million shillings and above are subject to a 40% PAYE rate. Under the proposed amendments, this category of earners will see their PAYE rate increase to 58%.
This proposed amendment is expected to spark public outcry, given the already perceived high tax burden on citizens.
The income tax amendments, presented in parliament, also include other measures such as a new land sale tax and increased excise duties on alcohol, specifically spirits and fuels.
If implemented, these changes will likely have significant implications for taxpayers and could generate debate and opposition within the public and legislative arenas.
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