@barrack I have not torn into CCK at any point in my discourse, just expressed my exasperation at the inaction. But just tell me so i understand, 

1: Is the tax rate that GOK has on safaricom higher than the one levied on other similarly strained (resources, support...e.t.c) providers?
2: Is it proper (in the natural justice realm) to assuage these providers by giving them a "level playing field" tilted in the favour of safaricom? 
3: Is whether or not the pricing model is sustainable a decision that GOK is responsible for? or is it CCK or is it the Ksh 2M++ a month CEO and management team of safaricom. 

The Way I see it, GOK is subverting a Strategy (Airtel has clearly declared that the pricing wars to them are a strategy to raise market share) to retain Safaricom's dominance, hence revenue (through shareholding). Just how is this good / fair / balanced action by the relevant authorities? 

lastly, whether the taxman is meeting the targets or not should be an issue of performance and (if my memory serves me right) a constitutionally required participatory action. Tying the implementation of the constitution to the price wars in the Telko is to me drawing the line way way too far. Its politics, not economics.



On Tue, Jan 18, 2011 at 12:55 PM, Barrack Otieno <otieno.barrack@gmail.com> wrote:
Well it is within the  democratic right of the PS to comment on the issue at least he gave an opinion which i tend to agree with but need some more education on the pricing of calls, i also think CCK has attained a certain level of independence contrary to what our good friend Brainiac says, (i stand to be corrected on this)  we need input from economists on the long term effects of this price changes to the industry considering the fact that we have not yet attained Universal Access, there are some parts like Archers Post in Eastern  that dont have very good coverage, i have an uncanny feeling they might not be sustainable in the long run, i would love to hear the opinion of technocrats on this lists, either way the government needs to set a level playing field to guarantee stability of businesses.

Best Regards


On Tue, Jan 18, 2011 at 12:43 PM, Solomon Mburu Kamau <solo.mburu@gmail.com> wrote:
The PS should have said the government will get less tax and not
derailment of the constitution implementation.

I think this is just a way of making Kenyans guilty of swtiching to a
lower tarrif, lest the 'constitution will not be implemented'.

Seriously, how many taxes do we pay directly and or indirectly to the
government?

Talk about a selfish government.


On 18/01/2011, Joram Mwinamo <joram.mwinamo@gmail.com> wrote:
> low pricing = less tax collected
>
> If im paying 3 bob per minute and the govt takes 10%(just as an example)
> thats 30cts per minute for govt
> if its 10% of 1 bob thats 10 cts per minute
>
> When everyone if forced to take prices down to 1 bob.....then less revenue
> overrall
>
> On Tue, Jan 18, 2011 at 12:29 PM,
> <ashok+skunkworks@parliaments.info<ashok%2Bskunkworks@parliaments.info>
>> wrote:
>
>> On Tue, Jan 18, 2011 at 12:11 PM, Joram Mwinamo <joram.mwinamo@gmail.com>
>> wrote:
>> > This is more an economic discussion than it is a digital one
>> > What he means is that the price war will deny the govt of revenues
>> through
>> > Tax which is needed heavily to finance the new constitutions
>> implementation
>> >
>>
>> How will a mobile price war deny government of tax revenues ?
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>
>
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--
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*****************************************************
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AND

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