Thursday January 9, 2020 - Amani National Congress (ANC) party leader, Musalia Mudavadi, has urged President Uhuru Kenyatta’s Government to withdraw the three per cent tax on small and mid-sized traders.

Speaking on Thursday, Mudavadi termed the tax as onerous and unnecessary.

Mudavadi warned that the new tax will make life even more difficult for the majority of Kenyans who are suffering because of the Government's bad economic policies.
“Kenyans are in a fix because KRA is trying very hard to raise money to meet Government obligations and this is making it extremely difficult for the ordinary people,” he stated.

Traders operating small and mid-sized businesses started paying a three per cent tax on their sales to KRA as from Wednesday following the re-introduction of the levy.

The Finance Act 2019, which President Uhuru Kenyatta signed into law on November 7th, reintroduced the turnover tax for businesses whose annual sales are below Sh5 million. 

This is in an effort to significantly increase tax collections.

Small businessmen and women have raised concerns over the new tax, arguing that the business environment has been unfriendly lately and the operational costs are too high.


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