Munya defends new taxes on ‘hustlers’

Meru Governor Peter Munya has defended the presumptive tax to be charged on small traders. [Photo, File]

Industrialisation CS Peter Munya has defended the presumptive tax to be charged on small traders who will be required to pay the levy alongside their trading permits.

Speaking in Meru, Munya said the presumptive tax on small-scale traders, informally referred to as ‘hustlers’, that came into effect on New Year’s eve, was prompted by high tax evasion in the country.

“The truth is there are so many Kenyans doing businesses but are evading paying taxes yet they expect the Government to deliver services,” said Munya.

But the CS said the Government would have adequate safeguards to ensure the hustlers are not hurt by the new tax.

“Sometimes it is not the paying of tax that is important but the declaration to establish who is earning what,” added Munya.

An estimated 2.7 million informal traders, including mama mbogas, mitumba sellers, village shopkeepers and hawkers, who take the annual county government trade licence, are expected to generate Sh5 billion, according to the tax proposals in the last budget presented by Treasury CS Henry Rotich last June.