Bwana Lawi, That is not correct. Most of the items you buy with 16% VAT have also paid some form of taxes. Import Duty: 25% of the CIF value Excise Duty: 20% of the (CIF value + Import Duty) IDF: 2.25% of the CIF fuel levy Stamp duty PAYE: 30% but prorated ______________________ Mwendwa Kivuva twitter.com/lordmwesh google ID | Skype ID: lordmwesh On 5 September 2013 14:27, Bwana Lawi <mail2lawi@gmail.com> wrote:
Is it mathematically correct to say that the current tax rate is 46% (assuming 30% PAYE plus 16% VAT)?
On Thu, Sep 5, 2013 at 2:24 PM, Kivuva <Kivuva@transworldafrica.com>wrote:
VAT on books. Still shaking my head
______________________ Mwendwa Kivuva twitter.com/lordmwesh google ID | Skype ID: lordmwesh
On 5 September 2013 13:42, James Maina <jameskmaina@hotmail.com> wrote:
Interesting discussion.
I've also received a text that KPLC VAT adjusted from 12% to 16%....and they have added a new water levy to elec bills per kwh. There's a new VAT on phones, VAT on every single banking transaction you make, VAT on MPESA, VAT on all imports, VAT on basically everything sold, VAT on rent, new VAT on books (you cant imagine such a thing in a 3rd world country with no reading culture!).
Come to think of it, actually, the VAT/PAYE I pay in a month to the govt may be MORE than the amount I have for saving.
------------------------------ Date: Thu, 5 Sep 2013 12:00:44 +0300 From: mail2lawi@gmail.com To: skunkworks@lists.my.co.ke Subject: [Skunkworks] all ICT items are vatable
The rationale behind zero rating tech items, if I remember correctly, was based on the premise that tech plays a very crucial role in vision 2030 and that Kenya needed go give herself an accelerated growth in IT to catch up.
That in itself gave IT the same rating as food in national priority. The problem, however, is that Kenya is a consumer market. We do not produce/manufacture tech stuff. Therefore, so as not to self-defeat, the compromise was to zero rate the tech stuff to spur growth. And it has worked wonders.
On Thursday, September 5, 2013, Adam Nelson <adam@varud.com> wrote:
I agree with @mark. In most US states, everything has sales tax except raw food and printed materials (books, magazines). I don't see why computers should get an exemption. Ideally, the broader the tax base, the lower the VAT rate can become. -- Kili.io - OpenStack for Africa: kili.io Musings: twitter.com/varud About Adam: www.linkedin.com/in/adamcnelson
On Thu, Sep 5, 2013 at 11:32 AM, Mark Mwangi <mwangy@gmail.com> wrote:
I do not buy the idea of tax subsidies for tech related matters. Food, healthcare, security yes because these are not primarily or rather should not be primarily profit oriented. Tellin me tech will improve all the above is like telling me everyone needs to eat so we take all our focus to growing potatoes. Technology firms should figure out how to turn a profit while paying taxes like everyone else. Granted I have benefited heavily from the exemption in the past but the supply and demand curves have stabilized. There is enough penetration in the industry for it to be self sustaining.
On Thu, Sep 5, 2013 at 10:37 AM, Kivuva <Kivuva@transworldafrica.com> wrote:
I heard from a source that Servers are not Vat-table. Who has a copy of the new VAT law? OT: Surely why tax books for students. Is somebody smoking something potent? ______________________ Mwendwa Kivuva twitter.com/lordmwesh google ID | Skype ID: lordmwesh
On 4 September 2013 20:50, Stephen Wanjau <wanjaustev@gmail.com> wrote:
The VAT bill is now law - if my memory serves me right it was passed while JKIA was burning and the unbecoming animal-human relationships were flourishing in the country. Coincidence? No?
Accept and move on as per Wash is the good thing to do but the best is to beat VAT 'digitally' if imports to an EA country and then to +254 for computing gear would prove cheaper.
0.5 cents worth.
Stephen
On Wed, Sep 4, 2013 at 3:51 PM, Edwin Onyango Owino <edowino@gmail.com> wrote:
It is not as simple as that Mark. We have to look at the whole picture. Computer equipment was taxable in the 90s then the tax was reduced to 5% before being abolished altogether. Was the move beneficial? Absolutely, it removed entry barriers and allowed people who could not procure computers to do so to some extent and enabled some of us to hone our skills. There are smarter ways to raise revenue and this is certainly not one of them. What is worse is that this taxation regime is not going to give our budget deficit any significant dent.
On Wed, Sep 4, 2013 at 1:20 PM, Mark Mwangi <mwangy@gmail.com> wrote:
The Tax exempt status of ICT things was just an incentive to allow investment. It was a holiday which is now over. Govt services cost
money.
Where are they supposed to get it if not through taxes? Point is should be we should raise hell when it is stolen or misused not complain about paying it.
On Wed, Sep 4, 2013 at 12:38 PM, Odhiambo Washington < odhiambo@gmail.com> wrote: > > Boss, please Accept & Move on. No need for this debate here. It's OT :-) > > Just find out how to beat it digitally. > > > On 4 September 2013 12:25, Patrick Mathenge <kabiroz@yahoo.com> wrote: >> >> May be economists can shed light on this, but question is, can you in >> the fullness of time grow an economy through over-taxing the citizens? Put >> differently, what is economic growth with reference to the net earning of an >> employee or net returns in business? >> >> Regards, >> Patrick Mathenge >> >> Sent from my BlackBerry® >> >> -----Original Message----- >> From: Adam Nelson <
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