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Capital Gains Tax - What if it is reintroduced?
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Genghis Khan
#21 Posted : Wednesday, June 08, 2011 10:29:02 AM
Rank: Member


Joined: 8/5/2010
Posts: 335
Location: Nairobi
GoK is a big fat Pest. Taxes do not solve problems. And neither does borrowing, which is just a stop-gap measure to aid operations.

Kibaki should entertain a visit from McKinsey & Co.: Then we can get a headline like
"50Cabinet & Assistant Ministers, 5,000 senior GoK officials, 700 Committee members cut from GOK payroll;
Kibaki promises Kenyans that the next phase of restructuring will target middle management, committee secretariats and...
... expected to save Kenyans Billions in staff costs monthly and streamline GoK processes...

Now thats a solution. I remember when Kibaki first became president he said some things like "... a fat person cannot run too fast..." he was referring to Moi's slow fat GoK.

Sorry if I got derailed from the subject, I just hate paying more & more taxes to cover recurrent GoK expenses. Our gava is just lazy, the easiest way to raise funds is to legislate... then increase recurrent cost...
"I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
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Meshark
#22 Posted : Wednesday, June 08, 2011 2:09:59 PM
Rank: New-farer


Joined: 5/10/2011
Posts: 4
yekeyeke wrote:
Such a move would probably work in the NSE,but end up killing local investors interest, in the stock market, which was the ultimate aim of the government, but not the property market like land or houses. This is simply because of demand and supply.
There are too many people with pent up demand and land and buildings /houses are in very short supply.
This would mean that the buyers would simply avoid the tax by adding it on top of the property prices. This would in effect make the property prices unaffordable, making nonsense of the government efforts of making housing affordable and with the current housing crisis, your guess is as good as mine as to what the majority of Kenyans would be able to afford.....

My take. No capital gains tax in Kenya for the foreseeable future.




Applause Applause Applause
Very true yekeyeke...I think the GoK has given a blind eye on what has really been the true cause of why it has collected less than what it had projected to collect and is planning to reintroduce some very stringent taxes such as the CGT.The main reason why the Gova has performed minimally in terms of collection of VAT, which is the main Gov source of income is due to the influx of substandard goods brought in by unscrupulous dealers thro the ports and borders and selling at very cheap prices in the Kenyan market...A case in question is the booming businesses in Eastleigh...It seems that all the money is being channelled to this Businessmen who in essence dont pay taxes...So instead of introducing additional tax burden to the common Mwananchi the Gova should just find a way curbing this illegal importations by putting in place stringent penalties upon those who caught enganging in this act
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mlennyma
#23 Posted : Wednesday, June 08, 2011 5:08:48 PM
Rank: Elder


Joined: 7/21/2010
Posts: 6,191
Location: nairobi
Throw this topic in the dust-bin never to retrieve it again.
"Don't let the fear of losing be greater than the excitement of winning."
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Cde Monomotapa
#24 Posted : Wednesday, June 08, 2011 5:18:50 PM
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Joined: 1/13/2011
Posts: 5,964
mlennyma wrote:
Throw this topic in the dust-bin never to retrieve it again.
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Obi 1 Kanobi
#25 Posted : Wednesday, June 08, 2011 5:39:05 PM
Rank: Elder


Joined: 7/23/2008
Posts: 3,017
The government is already eating too much of our hard earned money and they should not ask for anymore. If you buy real estate worth Sh 1m (normally from one's savings) you pay 160K as stamp duty, why would they need to take anymore from you.

For those who buy and sell real estate, they should fall under the Income tax Act because they are trading in the commodity and should pay the normal 30% of profit made at the year end. If the KRA is not collecting this, then its as a result of their disorganisation and laziness.

May be what KRA should do is introduce a threshold of properties one can sell a year, say 2 inwhich after the 3rd sale it is assumed you trade in real estate and a percentage of sales proceeds is withheld as WHT.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Cde Monomotapa
#26 Posted : Wednesday, June 08, 2011 6:15:18 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
Obi 1 Kanobi wrote:
The government is already eating too much of our hard earned money and they should not ask for anymore. If you buy real estate worth Sh 1m (normally from one's savings) you pay 160K as stamp duty, why would they need to take anymore from you.

For those who buy and sell real estate, they should fall under the Income tax Act because they are trading in the commodity and should pay the normal 30% of profit made at the year end. If the KRA is not collecting this, then its as a result of their disorganisation and laziness.

May be what KRA should do is introduce a threshold of properties one can sell a year, say 2 inwhich after the 3rd sale it is assumed you trade in real estate and a percentage of sales proceeds is withheld as WHT.

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gatoho
#27 Posted : Thursday, June 09, 2011 10:59:28 AM
Rank: Member


Joined: 1/1/2010
Posts: 518
Location: kandara, Murang'a
youcan'tstopusnow wrote:
yekeyeke wrote:
Such a move would probably work in the NSE,but end up killing local investors interest, in the stock market, which was the ultimate aim of the government, but not the property market like land or houses. This is simply because of demand and supply.
There are too many people with pent up demand and land and buildings /houses are in very short supply.
This would mean that the buyers would simply avoid the tax by adding it on top of the property prices. This would in effect make the property prices unaffordable, making nonsense of the government efforts of making housing affordable and with the current housing crisis, your guess is as good as mine as to what the majority of Kenyans would be able to afford.....

Applause Applause Applause Applause Applause



waende kwa transport kwanza
Foresight..
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VituVingiSana
#28 Posted : Thursday, June 09, 2011 5:42:57 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,221
Location: Nairobi
Obi 1 Kanobi wrote:
If you buy real estate worth Sh 1m (normally from one's savings) you pay 160K as stamp duty, why would they need to take anymore from you.
You are being conned. It is 4% = 40,000 on KES 1mn
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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