Effects of Saudi Arabia VAT on Kenyans

Introduction

For the first time, the Gulf Cooperation Council (GCC) countries are introducing Value Added Tax (VAT).

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(Photo by Waka)

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May 1st Speech – The True Position

I received the following message on 06/05/2017, 11:08 through Whatsup from a good friend about the salary increment by the President:

“The lowest salary in Kenya was 12,593 and it was non-taxable. The president announced an increment by 18% which will see the lowest salary rising to 14,859.74. This new pay is within the taxable bracket of 15%, which you will be deducted 2,228.96, Then you will go home with a net pay of 12,630.78 na Bado NHIF, Bado NSSF….. This is brain mathematics… Tricky indeed… Let’s face it… From 12,593 to 12,630.78, Uhuru just added Ksh 37.78 to the lowest paid worker… ”

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