(Visited 6 times, 1 visits today)
Capital Lifestyle
A Kenyan lifestyle platform for digital storytelling.
Very true we need to expand tax base
Whilst your article is insightful, what of the government sealing loopholes ? As of yesterday there was a scandal on how the government lost money as tabled by Aden Duale.
High taxes do not necessary translate to better living standards. My take is that the government has to show some accountability. Who audits the government by the way ?
Polycarp, you need to tell this to those shortsighted CORDless political opportunes.
We loose close to 30% of our GDP on corruption, out of the total 10m Kenyans working, only 2m are paying tax, whilst you may be expanding govt revenue by taxing consumption, this article reels of severe ass licking of the govt’s agenda, and you and Polycarp are pathetic honchos out to blame CORD for your inability to lower the cost of living in the country. As said by others, we will also consume Chinese products and shun Igathe and Uhuru’s products…
I respect all political parties in Kenya in equal measure. Every government deserves empowerment via taxation to execute its mandate. This time round it is Jubilee and next time round it maybe CORD. Both deserve to expand tax base to deliver their mandate. Sincerely accept my apologies if my article came across as pushing one side of the divide. God bless.
You miss the point in this VAT article. KRA is partyblind
very good Polycarp. We can only develop by expanding the taxbase rather than just taxing the few salaried individuals to the bone.
.
Your article is shortsighted and does not hold any water. According to statistics Kenya is among the highest taxed countries in the World. I do not think you have ever ran a business. It is prudent to first look at cutting costs and then look at raising revenue. A government wage bill of over 400 Billion shillings is not healthy at all. What we want to raise from the VAT act can be raised by cutting the wage billy by only 2%. Let us work on the inefficinecies thay you mentioned. This bill and others to come will scare away investors who are the job creators. I own a business and I am rethinking my expansion plans because of the high costs of doing business in this country. Insecurity, irregular and high cost of power, poor infrastructure etc…..The ills are many yet we want to Fertilizer which is driving our agricultural sector, tourism our leading foreign income earner. Taxation is not the way forward but backwards. By the way have you ever thought who are the powers that are telling us to raise taxes? read Thursdays paper and look for the 3 letter organization and please think, think, think !!! before your right such……….
Polycap ; was CEO haco industries and now CEO Vivo Energy (Shell’s exclusive licensee in Africa). I guess now you now answers you questions or comment “I do not think you have ever ran a business.” Funny may be you need better understanding of economics
Accept and move on is becoming the Kenyan philosophy EEEH!!! Im not a manufacturer but as chairman of them I feel you’re really not being objective overall. Manufacturers bear the brunt and with electricity going up Kenyans will all soon be buying from china and kariobangi industries simply because we cannot afford the ;kujenga nchi’ motto you are trying to perpetrate. At least, fight for the rights of our businesses otherwise we end up being middlemen and brokers and having no real value impact on this Great and Mighty land that is Kenya!!!!
Totally agree. And that is what they want us to be, consumers not producers. We have all the resources to be self sufficient but what do we do with them. Get serious Mr Igathe.
Higher taxes without adequate checks and balances leads to excessive wastage.
HALLO POLYCARP – I HAVE NOT SEE YOU IN MANY DAYS BUT YOUR PASSIONATE PLEASE ON VAT NEEDS REPLY FROM AN OLD FRIEND.
OVERALL MESSAGE ON TAX – SPOT ON.
SPECIFIC MESSAGE ON VAT: NOT CLEAR ON HOW THE POOR SHOULD SHOULDER MORE PAIN FOR A GAIN WHICH CANNOT BE GUARANTEED. WE CHANGED LEADERS BUT NO NECESSARILY VALUES IE CORRUPTION AND NON PAYMENT OF TAXES BY SOME. MEANING YOUR ARGUMENT IS BASED ON THE GOODWILL OF MAN-HERE MEANING CITIZEN AND GOVERNMENT – GOVERNMENT TO APPLY TAX REVENUE IN PRODUCTIVE SECTORS AND CITIZEN TO SUDDENLY DEVELOP FAITH -THAT IN TURN THE INVESTMENT WILL UPLIFT THE LIVES OF OTHERS.
ALTERNATE VIEW: REVISE VAT WHERE MAJORITY ARE HURTING ASAP IN YEAR 1. REPEAT REQUEST IN YEAR 2. TO GAIN CREDIBILITY SPEND BALANCE OF YEAR 1 IN REDUCING WASTE IN GOVERNMENT( FOR EXAMPLES DO A FOCUS GROUP WITH MINISTRY ACCOUNTANTS AND INTERNAL AUDITORS AND THE SHOCK AWAITS YOU)
SOLUTION: CROWD SOURCE AND GIVE INCENTIVES TO WHISTLE BLOWERS AND OFFER SUBSIDIZED PROFESSIONAL AUDIT, ACCOUNTING AND TAX SERVICES TO THOSE WHO REALLY WANT TO PAY TAX AND SOME LOAN ARRANGEMENTS VIA KRA TO THOSE WITH ARREARS. THE DISEASE WILL END.
AS CHAIR OF KMA I AM OPEN TO GIVE WRITE AND PRACTICAL OPTIONS TO GOVERNMENT ESPECIALLY KRA. MAKE IT POSSIBLE
I fully agree with you on one thing – that the spirit of the Act is in the right place. However, and more importantly, the spirit of those who administer the finances of this nation is usually not in the right place. There is a lot of tax that should be collected, but is not.
KRA and the government first needs to recklessly and with impunity make an example of those who have hidden behind corruption. Why pay more tax, when a big portion of it will go into people’s pockets anyway? Guess what – we wouldn’t mind paying tax if we knew it was being used for the good of the nation.
First order of business should be cleaning up house, saving the billions lost in corruption, before making life even more unbearable for Kenyans – both individuals and businesses.