The 3.07 trillion budget will seemingly hit Kenyan businessmen where it hurts most… their pockets.
Informal traders, the likes of movie shops, licensed by county governments will next year start paying a presumptive tax of 15% of the annual single business permit fee issued.
This comes after the government proposed to do away with the turnover tax owing to noncompliance by the large informal sector that has proved hard to police.
“The informal sector in our country is expansive and remains out of the tax net. The Finance Act, 2006 introduced taxation of the sector through a turnover tax. However, this system of taxation has largely been unsuccessful and the levels of compliance have remained low due to the profile of the sector,” Treasury Cabinet Secretary Henry Rotich said.
