Teachers and Civil Servants Take home A Third of salaries due to Taxes
The Public Service Commission (PSC) has urged a reconsideration of the existing taxes and levies due to the soaring cost of living, leading to exorbitant prices for essential goods. PSC Chair Anthony Muchiri addressed the National Dialogue Committee (NADCO) on October 2, expressing concerns over the mental health toll on many salaried Kenyans who struggle to meet their financial obligations. This, he argued, has resulted in decreased morale and subpar performance within the public service.
Muchiri presented data from the State Department of Public Service, revealing a substantial increase in public officers seeking psychosocial support, rising by 84% from the financial year 2018/2019 to 2022/2023. Moreover, statistics indicated that 21.62% of 79,253 public officers earned less than one-third of their basic salary. For example, 42.83% of 31,892 prison service officers and 48.5% of 106,667 disciplined service officers fell into this category.
These figures underscored the challenges faced by public officers, particularly when additional taxes and levies are introduced. In response, PSC proposed potential solutions such as revising the taxation system, increasing wages, or exempting levies for workers with mortgages.
The commission also suggested a phased implementation of the 1.5% housing levy and changing the deduction of the housing levy from gross pay to basic salary to mitigate the impact on employees.
Also Read:Â List of Teachers to Be Rewarded During World Teachers Day
To alleviate the financial burden on workers and improve their performance, PSC recommended a review of Value Added Tax (VAT) on petroleum products, which significantly affects the cost of living.
Furthermore, PSC advocated for the restructuring of the Independent Electoral and Boundaries Commission (IEBC) to enhance its effectiveness, efficiency, and credibility. This restructuring should safeguard the commission from political party influence.
NADCO, co-chaired by Kalonzo Musyoka and Kimani Ichung’wah, started receiving public submissions on September 22, addressing various proposals aimed at resolving the standoff between the Kenya Kwanza administration and the opposition.
Teachers and Civil Servants Take home A Third of salaries due to Taxes
