The table below shows the current taxation rates in Kenya A member of parliament’s monthly earnings are as follows: Basic salary Kshs. 300 000, commuted mileage...

The table below shows the current taxation rates in Kenya

A member of parliament’s monthly earnings are as follows: Basic salary Kshs. 300 000, commuted mileage allowance of Kshs. 75 000, entertain allowance Ksh. 60 000, extraneous allowance Ksh. 30 000, house allowance Kshs. 70,000, car maintaince allowance Kshs 247 000. he is entitled to a personal relief of Kshs. 1162 every month.
a)If before the promulgation of the new constitution all the MP’s allowances were tax free, calculate the PAYE the MP’s used to pay
b)In the new constitution all the MP’s are taxed just like the other Kenyans. Calculate the percentage increase in the MP’s PAYE after the new law was passed.

Answers

Kavungya answered the question on September 17, 2019 at 08:48

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