Bosses Plead for Half Percent Levy Cut and VAT Relief

Kenya business leaders want the housing levy cut to half a percent. They asked the government to remove taxes on basic foods and base other tax cuts on basic pay instead of gross pay. The Federation of Kenya Employers urged its members to give workers the six percent raise promised last year.

Bosses say these changes would let workers keep more money. Current rules take a total of three percent from pay for housing projects. The new Finance Bill might increase costs since companies cannot claim back certain taxes anymore. This affects medicine, sugar, milk, phones, and other everyday items.

FKE head Jacqueline Mugo said lower taxes would ease employees' living costs and help businesses compete better. Employers feel left out of recent Labor Day talks with unions. They support clear rules about whether Kenya should focus on making goods or just trading them. Business leaders want Kenya to make more products for sale across Africa and worldwide.
 

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