Since announcement by president Uhuru on tax relief measures to cushion employees due to the coronavirus pandemic, teachers have been enjoying the PAYE (Pay As You Earn) and now its good news that some banks have started considering loans for teachers based on the new tax relief.
In an SMS sent to teachers by one of the banks it was clear that banks are considering issuing bank loans for teachers using the new tax relief.
“Iam glad to inform you that we are now considering the New Tax relief in lending. You therefore stand a chance of higher amount qualification. For calculations and enquiries contact 07********” read an SMS sent to a teacher banking with Nationa bank.
Some banks also gave teachers three months loan holiday to cushion them against the pandemic. ABSA bank is one of the banks that teachers are enjoying the moratorium.
Pay As You Earn (PAYE) was reduced from 30 per cent to 25.
“There will be a reduction of the income tax rate from its maximum of 30 to 25 per cent,” said President Uhuru in April.
President Uhuru Kenyatta also directed the Treasury to offer 100 per cent tax relief for persons earning a gross income of Sh24,000.
Uhuru said a reduction of corporation tax will be from 30 per cent to 25 per cent.
“There will also be a reduction of the turnover tax rate from three per cent to one percent,” he said.
Uhuru also suspended the listing on CRB of any persons in micro small or medium enterprises whose loan accounts were due or in arrears effective April 1.
“..this is to protect jobs for our people and uncertainty for employers..” he said.
He further ordered the reduction of VAT from 16% to 14% effective 1st April.