MP Ichungwah explains how rent cost will reduce for hustlers.
Speaking to the media, Kikuyu MP Ichungwah explains how rent cost will reduce for hustlers upon approval of the newly proposed finance bill.
The legislator explained that reduction in income tax for landlords will see a reduction in rent for tenants who are also hustlers.
Ichungwah outlined that Bill the finance bill proposes the reduction of the applicable income tax rate on monthly rental income from 10 per cent to 7.5 per cent.
Ichungwah stated,”The reduction shall have a trickle-down effect on the cost of rent payable by tenants as the Bill has reduced the tax payable by landlords for monthly rental income.”
According to the Tax watchdog, Kenya revenue authority, Rental income is tax payable by resident persons (individual or company) on rental income earned for the use or occupation of a residential property.
The rental income, is payable when landlords receive rent from their tenants either monthly, quarterly, semi-annually or annually
Landlords with rental income below Sh288,000 or above Sh15 million per year are required to file annual income tax returns and declare this rental income is substituted with income from other sources.
The newly proposed finance bill, has received a lot of back lash from citizens, with a section complaining of over taxation.
However, during a media engagement yesterday, President William Ruto explained that the tax increase will do more good than harm.
For instance, the head of state highlighted that the money will be generated towards off setting the ksh. 200 Billion that was left by the previous regime.