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CS Mbadi to tax professionals, landlords more to get Sh100B

The Ministry of National Treasury and Economic Planning will lead a redesigned tax system in the government’s new effort to increase tax income from landlords. The government’s goal is to collect an extra Ksh 83 billion.

Given that landlords have historically been challenging to tax effectively, this initiative represents the most recent attempt to include them in the tax system.

In addition to professionals such as physicians, attorneys, and accountants who participate in advisory work, John Mbadi, the Cabinet Secretary of the National Treasury, identified landlords as a primary focus of attention.

The drop in the rental income tax from 10% to 7.5% that occurred two years ago is the impetus for this proposal.

However, the government only receives 17 billion Kenyan shillings annually from the rental income tax, a significantly smaller amount than the minimum of 100 billion Kenyan shillings it could collect.

To encourage all landlords to declare their income, the current iTax system needs to improve self-reporting.

The Kenya Revenue Authority (KRA) faces challenges in ensuring compliance due to the unofficial nature of many operations.

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