Thousands of school teachers, principals, civil servants and private sector employees will enjoy lower taxes from January as the government effects changes to the income tax law. Employees will also get higher personal relief — the amount returned to workers after tax every month. There are also proposals for eliminating taxes on bonuses, overtime and retirement benefits paid to workers who fall under the lowest income tax band though there is no mention of how this will be effected in the circular sent to companies. From January 1, next year, personal relief will be raised from the current Sh13,944 per year (Sh1,162 per month) to Sh15,360 per year (Sh1,280 per month). “This is definitely meant to create the biggest impact on those in the lowest income bracket whose monthly personal relief will also go up.

Source: Daily Nation November 24, 2016 07:36 UTC