Treasury gazettes a reduction of VAT from 16% to 14% after Uhuru directive
The Kenyan government has already gazetted the reduction of the VAT rates from 16% to 14%, following the president’s directive on Wednesday last week.
To any business, this is a very welcome move by the government to cushion taxpayers from the cash flow impacts that come by as a result of the monthly VAT payments.
Speaking to the press, the president directed that the National Treasury reduces the VAT rates effective April 1, 2020.
In his notice dated 26th March 2020, the Treasury CS Ukur Yattani said section 5 of the VAT Tax Act would be amended by deleting the words 16% and replacing them with 14%.
Aside from that, the president directed all ministries and departments to pay Ksh 13 billion worth of all verified pending bills within 21 days.
His directive further saw a reduction in the Pay As You Earn from 30% to 25%.
Is this in any way a relief for you as a Kenyan Taxpayer? Share your thoughts.