Treasury CS Ukur Yatani has proposed the introduction of a minimum tax to be paid be paid by all companies at the rate of 1% of their gross turnover. Speaking when presenting the 2020/2021 budget at parliament, CS Yatani said some companies don’t contribute to tax revenue and yet enjoy facilities such as infrastructure whose cost of construction and maintenance is serviced by the government through tax revenue, “Some companies continue to declare losses year in year out hence not contributing to the exchequer in terms of revenue,” he said.
The CS also proposed that tax cheats be granted a three year disclosure period to allow Kenyans who made omissions in tax returns in the last five years to pay dues owed without interests and penalties. “The programme will run for three years. In order to encourage uptake of this programme, I further propose to grant relief for penalties and interests in respect of the tax disclosed after payment of the principal tax.” He further proposed the threshold for rental income to be revised up to Kshs 15 million per year from Kshs 10 million.