Small scale traders who form the majority are likely to be hit further as KRA moves to enforce 3 percent patriotic tax. This represents the controversial three percent Turnover Tax (ToT) that has been at the center of row between KRA and small scale traders.
What this means is that for every 1000 generated in sales by a trader irrespective of whether it’s a profit or loss, a trader will be forced to part with Sh 30 to the taxman..
Turnover tax is charged on total revenue or sales and does not factor in overhead costs.
Small traders will now be required to keep necessary records showing total sales for assessment of Turnover Tax. Traders will also be required to 15 per cent presumptive tax payable upfront while applying for business licenses at the county government.
The taxman has asked Kenyans to pay the Turnover Tax as a ‘patriotic duty’