Super rich Kenyans might soon be subjected to wealth tax as the government looks to plug revenue holes in its Sh3 trillion 2021/22 budget.
Treasury Principal Secretary Julius Muia said discussions are ongoing to introduce higher taxes on High-net-worth individual and high-income earners.
“We are looking at fiscal changes that will go into the Finance Bill and we are in discussions over the wealth tax among many other fiscal reforms to boost revenues,” Dr. Muia told the Business Daily Tuesday.
The PS explained the wealth tax money would be channeled to the recovery of the economy, which was disrupted by the Covid-19 pandemic.
“It is too early to comment on how it will look because we are still consulting to bring people on board. The complexity of budget proposals undergo a lot of simulation, structured stakeholder consultations, considering a lot of aspects, looking at facts without nuance before policy is implemented,” Dr Muia said.
He said they were contemplating introducing the wealth tax for the high net worth individuals (HNWI) who will remit a small share of their net worth (assets minus liabilities) or a higher tax rate for those who earn huge amounts of money.
The Finance Bill, which outlines Treasury’s plan for new taxes, duties, and relief for the year, is set to be tabled in Parliament next month.