The taxman has asked millions of small traders to immediately pay a newly introduced tax that kicks in from January or risk not getting their business permits renewed.
As from January 1, 2019, small traders across the country will be required to remit 15% of their single business permit or trading license fee to the county government, Kenya Revenue Authority (KRA) has announced.
But in Kenya our 30 percent corporation tax is for everybody which affects compliance for small and medium enterprises,” said Mr Mohamed.
Last week, the Kenya Revenue Authority (KRA) announced that informal traders will be required to log on to its iTax platform and pay the presumptive tax before county governments can renew their business permits for next year.
The latest profit warnings issued by Nairobi Security Exchange listed firms presents yet another puzzle of how the billions of investments meant to improve the business environment has failed to yield.
If adopted, corporate firms such as limited companies, trusts and co-operatives will enjoy a five percent drop in the amount they are taxed on their earnings.