Kenyans, especially the low-income earners, are set to enjoy higher salaries starting from January this year following changes made by the Kenya Revenue Authority (KRA).
The Authority, on Tuesday, announced that it had increased the monthly tax relief on salaries as well as expanded the current tax bands.
In a statement directed to employers, employees and other individual taxpayers, KRA stated that it had raised the relief from Sh1162 to Sh1280 meaning that salaries would slightly increase.
Most of those who earn low incomes are set to benefit more from this arrangement even though the salary increase will be minimal.
At the same time, the levy man expanded the lowest taxable income to Sh11,181 meaning that anyone who earns a monthly salary below the indicated amount would now be exempted from tax.
“The new rates of tax as revised above will apply for January 2017 Payroll. The purpose of this notice is, therefore, to advise the employers, employees and other individual taxpayers to implement the above changes while computing the taxes for periods beginning 1st January 2017 and beyond,” read the statement.
Though the changes sound minimal, the relief will go a long way in easing the burden, especially for the low-income earners.
KRA last made reviews to the taxes in 2005 when it increased the personal relief from Sh1056 to Sh1162 as well as increased the lowest taxable salary to Sh11,135.
