Kenyan Teachers employed on permanent and pensionable terms can now rejoice after the government’s decision to extend the tax relief till the corona virus pandemic ends. The tax relief was only scheduled to run for three months. This means teachers will continue to enjoy the PAYE relief so long the COVID-19 is still here with us. This means that teachers and other civil servants earning more than sh 24, 000 a month will continue enjoying the PAYE relief until the virus stops spreading
This is after the government bowed to pressure from the International Monetary Fund (IMF) which asked it to do away with income tax, value-added tax and sales levy cuts that were introduced during the Corona virus disease pandemic.
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Treasury Secretary Ukur Yatani in June told Parliament that once the Covid-19 pandemic ends, the government will have to review the tax breaks so as to close the gap between the Budget and expected revenues estimated at Sh840 billion.
This comes in handy at a time when some financial institutions including the national bank, NBK have decided to increase teachers’ ability to borrow by using the new adjusted PAYE to calculate loan amounts.
NEW PAYE
Tutors who may be interested in applying for bank loans during the Covid-19 period are likely to reap more from the newly adjusted Pay As You Earn, PAYE.
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