Stakeholders from the private sector, banks and accountants have told the Parliamentary Committee on Finance and National Planning to lower the top PAYE tax rate from 35 percent to 30 percent.
The Kenya Private Sector Alliance (Kepsa) presented its proposals during a meeting with the committee. Chairman Jaswinder Bedi said the current top rate of 35 percent applies to annual incomes above Sh9.6 million.
Kepsa proposes five new tax bands with a maximum rate of 30 percent. The proposal also seeks to raise personal tax relief to Sh3,000 per month.
Kenya Bankers Association chief executive Raimond Molenje said the reduction would enable banks to issue an extra Sh10 billion in loans. Grant Thornton tax partner Samuel Mwaura said formal sector workers already carry a heavy tax burden.
