By GYNNIE KERO
Treasurer Ian Ling-Stuckey says the Government has no intention of cutting or reducing the personal income tax.
He told Parliament that K11 billion was collected from income tax which contributed to Government’s total revenue of K14.3 billion.
“On an income tax holiday, we know that the government revenue of K14.3 billion, some K11 billion of that is collected by the IRC (Internal Revenue Commission),” Ling-Stuckey said.
“To cut personal income tax is something that is going to affect our revenue position and something that we would look at very closely and reduce as a very last resort. At this point in time, there is no intention by the Government or Treasury to touch that particular base.
“But what we are working on is to look at other avenues to assist struggling businesses.”
Ling-Stuckey was responding to questions from Ijivitari MP Richard Masere on the K5.6 billion economic stimulus package.
Masere said the Covid-19 had affected the business community and people and asked the Government about the measures it negotiated with commercial banks and the two superfunds.
He said commercial banks were expected to reduce loan repayment rates to 1 per cent for customers.
“Why isn’t the banks passing on the 2 per cent rate? Masere said.
“Is there any agreement in place where the commercial banks will allow people who owe money to the banks to be given holidays?
“Meaning they will not repay loans over certain a period of time and whether that loan will be written off by the commercial banks?”
Ling- Stuckey said he has yet to receive a report on what commercial banks were doing.
By GYNNIE KERO