JUST IN:

The National Treasury is now proposing for 35% income tax on all monthly salaries above Sh500,000.

According to a copy of the Finance Bill 2023, Treasury is also seeking to deduct 3% of all employees’ basic salaries towards a kitty known as the National Housing Development Fund. This deduction will be matched by another 3 per cent by the employer.

The Housing deduction for employees is capped at Sh5,000.