Teachers and Other Civil Servants Face Double Tragedy Due to Double Taxation

Teachers and Other Civil Servants Face Double Tragedy Due to Double Taxation

Teachers and Other Civil Servants Face Double Tragedy Due to Double Taxation. Teachers, civil servants and other workers may see their August pay cut due to the government’s double housing tax deduction.

The Ministry of Lands, Public Works, Housing and Urban Development has taken a bold step by issuing a notice retroactive to the first of July for the date of collection of tolls.

Employees are required to contribute 1.5 percent of their gross monthly wages to the controversial affordable housing tax, and employers must pay the same amount.

Retroactive contributions will result in a 3% reduction in workers’ compensation as companies prepare to introduce required deductions.

According to the 2023 Financial Law, “Employees and employers must be charged 1 and 5 percent of the employee’s gross monthly salary, and employers must be charged 1 and 5 percent of the employee’s gross monthly salary.” by the Lord.”

As a result, companies will be forced to contribute up to 3 percent of their employees’ wages in July and August.

At the end of August, a worker with a gross monthly salary of 50,000 shillings loses 1,500 shillings due to housing tax.

The cost in July and August will be 3,000 shillings for a person with an income of 100,000 shillings.

People with a gross monthly salary of 200,000 shillings to cover two months would lose a total of 6,000 shillings.

The government said the money would be used to build affordable housing for low-income people.

After widespread public protest, the government reduced the monthly housing allowance for employees from 3% to 1.5%.

Ruto said on June 7: “Even if we experience 3 percent pain, we are still alive. Seven million Kenyans live in slums and among millions of young people looking for work. We are human if we share in the suffering of others. ”

This charge has been converted into a tax and is collected by the Kenya Revenue Authority along with other collections.

Additionally, unlike the original plan before Congress passed the law, employees can no longer transfer their paychecks to their spouses and children.