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Capital Gains Tax set at 0.3% of transaction value
instinct
#1 Posted : Thursday, June 11, 2015 8:36:26 PM
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Joined: 8/17/2007
Posts: 294
Treasury CS Henry Rotich has rescinded the 5% cgt and replaced with 0.3% tax on each transaction. market should be responding positively to this tomorrow....
Fyatu
#2 Posted : Thursday, June 11, 2015 8:38:19 PM
Rank: Veteran


Joined: 1/20/2011
Posts: 1,820
Location: Nakuru
instinct wrote:
Treasury CS Henry Rotich has rescinded the 5% cgt and replaced with 0.3% tax on each transaction. market should be responding positively to this tomorrow....


This is very good news
Dumb money becomes dumb only when it listens to smart money
whiteowl
#3 Posted : Thursday, June 11, 2015 8:46:25 PM
Rank: Veteran


Joined: 4/16/2014
Posts: 1,420
Location: Bohemian Grove
Fyatu wrote:
instinct wrote:
Treasury CS Henry Rotich has rescinded the 5% cgt and replaced with 0.3% tax on each transaction. market should be responding positively to this tomorrow....


This is very good news

He is finally back to planet earth, I thought we'd lost him to the aliens forever.
Boris Boyka
#4 Posted : Thursday, June 11, 2015 8:47:17 PM
Rank: Veteran


Joined: 11/15/2013
Posts: 1,977
Location: Here
Fyatu wrote:
instinct wrote:
Treasury CS Henry Rotich has rescinded the 5% cgt and replaced with 0.3% tax on each transaction. market should be responding positively to this tomorrow....


This is very good news

So new transaction charges @ 2.1%..& 2.4% up from the 1.8%...&2.1% respectively
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
Kingotore
#5 Posted : Thursday, June 11, 2015 9:34:05 PM
Rank: New-farer


Joined: 12/27/2013
Posts: 87
This tax is now understandable.hope market will respond fast.
GOOD TO GREAT. KINGOTORE
VituVingiSana
#6 Posted : Thursday, June 11, 2015 10:31:31 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,224
Location: Nairobi
NSE, CMA and CDSC (to be bought out by NSE) should reduce their piece of the pie from 0.32% to a more manageable level e.g. 0.15% (on buy and sale)... It is not fair to lump the entire 0.3% on sales to Investors.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Kagame
#7 Posted : Thursday, June 11, 2015 10:40:11 PM
Rank: New-farer


Joined: 4/1/2014
Posts: 47
This is worse than cgt as far as investors are concerned especially when the share prices are declining.cgt focused on gains.the new transaction tax is chargeable on both acquisition and disposal,very thoughtful of rotich as he will still get revenue even in a bear market.
mlennyma
#8 Posted : Thursday, June 11, 2015 10:43:56 PM
Rank: Elder


Joined: 7/21/2010
Posts: 6,191
Location: nairobi
Iam still not happy,it should be 0.3% of the gain,how can you tax my capital??
"Don't let the fear of losing be greater than the excitement of winning."
murchr
#9 Posted : Thursday, June 11, 2015 10:55:24 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
mlennyma wrote:
Iam still not happy,it should be 0.3% of the gain,how can you tax my capital??


I thought the Capital gains tax on shares traded has been scrapped off and this is witholding tax ama? Capital gains tax of real estate stays
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
Goldilocks Reloaded
#10 Posted : Friday, June 12, 2015 9:07:56 AM
Rank: Member


Joined: 1/14/2014
Posts: 178
Who is a tax guru in Wazua to break this down for us further. We need to know the full implications before we celebrate much. Some of us are already badly hit by the bear and do not need further bashing. We're not sinners in taxation terms
Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it – Peter Lynch
VituVingiSana
#11 Posted : Friday, June 12, 2015 11:03:38 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,224
Location: Nairobi
Kagame wrote:
This is worse than cgt as far as investors are concerned especially when the share prices are declining.cgt focused on gains.the new transaction tax is chargeable on both acquisition and disposal,very thoughtful of rotich as he will still get revenue even in a bear market.

I thought it was just on the Sale. Needs verification.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#12 Posted : Friday, June 12, 2015 11:06:14 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,224
Location: Nairobi
mlennyma wrote:
Iam still not happy,it should be 0.3% of the gain,how can you tax my capital??
Yes, I like that i.e. 0.3% on the gain but that ain't happening... d'oh! d'oh! d'oh!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Aguytrying
#13 Posted : Friday, June 12, 2015 11:14:44 AM
Rank: Elder


Joined: 7/11/2010
Posts: 5,040
Its a nice trade off for capital gains tax. Its less confusing and wont bring wrangles.
The investor's chief problem - and even his worst enemy - is likely to be himself
mlennyma
#14 Posted : Friday, June 12, 2015 11:32:38 AM
Rank: Elder


Joined: 7/21/2010
Posts: 6,191
Location: nairobi
Aguytrying wrote:
Its a nice trade off for capital gains tax. Its less confusing and wont bring wrangles.

they have snicked in and added something to be counted as transaction costs.
"Don't let the fear of losing be greater than the excitement of winning."
mlennyma
#15 Posted : Friday, June 12, 2015 11:34:24 AM
Rank: Elder


Joined: 7/21/2010
Posts: 6,191
Location: nairobi
Aguytrying wrote:
Its a nice trade off for capital gains tax. Its less confusing and wont bring wrangles.

they have snicked in and added something to be counted as transaction costs.however friendly they may call it,its a tax
"Don't let the fear of losing be greater than the excitement of winning."
Akenyan2014
#16 Posted : Friday, June 12, 2015 11:42:23 AM
Rank: Member


Joined: 5/6/2014
Posts: 268
Location: Nairobi, Kenya
Is it that if tx charges were 2.0 % I will now be charged 2.3% or how will it transfer to me?
ProverB
#17 Posted : Friday, June 12, 2015 11:48:07 AM
Rank: Veteran


Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
mlennyma wrote:
Aguytrying wrote:
Its a nice trade off for capital gains tax. Its less confusing and wont bring wrangles.

they have snicked in and added something to be counted as transaction costs.however friendly they may call it,its a tax


I think additional 0.3% on the 1.8%-2.1% commission brokers charge on every transaction brings costs of transactions to 2.1% - 2.4% transactions costs.

So in a full trade cycle, your cost is now between 4.2%-4.8% and not 3.6% - 4.2% as was initially.

This is cheaper compared to total transaction charges of the earlier 3.6% - 4.2% + 5% on gains!

This levy is way better and the Gvt gets a chunk of daily trade volumes of the NSE as income to them

(e.g 0.3% of yesterday 750million) ..not bad. investors not badly off..gvt ok too... brokers pissed off since inorder to capture the levy..all transactions are up for scrutiny

..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
winmak
#18 Posted : Friday, June 12, 2015 12:29:03 PM
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Joined: 12/1/2007
Posts: 539
Location: Nakuru
No mention on property gains tax... I think they should consider a similar approach
For investors as a whole, returns decrease as motion increases ~ WB
Othelo
#19 Posted : Friday, June 12, 2015 12:32:54 PM
Rank: User


Joined: 1/20/2014
Posts: 3,528
Rotich actually gets 0.6% per transaction becuase both parties will be charged......... ama?
Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
newfarer
#20 Posted : Friday, June 12, 2015 12:44:32 PM
Rank: Elder


Joined: 3/19/2010
Posts: 3,504
Location: Uganda
What if it is a 280%loss on kq share sale. Do i still pay the.0.3% tax?
punda amecheka
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