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Inflation tax sets consumers for fresh July price incre
Rank: Member Joined: 3/3/2016 Posts: 132
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"Prices of cars, fuel, cigarettes, alcoholic drinks, juices and financial services are expected to rise once again in July when the Treasury factors in the average inflation rate for the past year in line with new excise tax regulations passed by Parliament. The new Excise Duty Act, which came into force last December, provides for adjustment of the prices of goods based on the average inflation rate for the preceding 12 months – a move that would mostly affect goods consumed by the lower middle to upper classes. Kenya’s average inflation rate stood at six per cent, meaning that the Sh200,000 exercise duty currently charged on imported cars aged more than three years will rise by six per cent, making the new figure Sh212,000 the base for next year’s adjustment. Prices of motorcycles, mineral water, food supplements, jet fuel, diesel oil, fuel oil and plastic shopping bags, which are listed as excisable goods, will be subject to similar adjustments. Poor segments of the society will not be spared the price inflation as some of the services they consume such as mobile phone airtime, money transfers and financial services are subject to the new law and could be adjusted in line with the inflation rate." http://www.businessdaily.../-/evkxboz/-/index.html
This administration will be remembered for its fiscal policies mostly tax and debt. Guys will/must pay their extra taxes but it will come out of consumption of other goods and services, so lower spending, lower revenues for companies, lower corporate taxes. Right?
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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Plimsoul wrote:"Prices of cars, fuel, cigarettes, alcoholic drinks, juices and financial services are expected to rise once again in July when the Treasury factors in the average inflation rate for the past year in line with new excise tax regulations passed by Parliament. The new Excise Duty Act, which came into force last December, provides for adjustment of the prices of goods based on the average inflation rate for the preceding 12 months – a move that would mostly affect goods consumed by the lower middle to upper classes. Kenya’s average inflation rate stood at six per cent, meaning that the Sh200,000 exercise duty currently charged on imported cars aged more than three years will rise by six per cent, making the new figure Sh212,000 the base for next year’s adjustment. Prices of motorcycles, mineral water, food supplements, jet fuel, diesel oil, fuel oil and plastic shopping bags, which are listed as excisable goods, will be subject to similar adjustments. Poor segments of the society will not be spared the price inflation as some of the services they consume such as mobile phone airtime, money transfers and financial services are subject to the new law and could be adjusted in line with the inflation rate." http://www.businessdaily.../-/evkxboz/-/index.html
This administration will be remembered for its fiscal policies mostly tax and debt. Guys will/must pay their extra taxes but it will come out of consumption of other goods and services, so lower spending, lower revenues for companies, lower corporate taxes. Right? Eurobond money gotta be paid.no way out .no minerals to sell ,no oil to sell.so the culprit has to be taxes. I personally believe raising taxes is a poor way of managing country's financial woos . There has to be a combination of spending cuts and tax hike on wealthy . Buy in kenya we are spending more than we can generate, and also we end up taxing more the poor with daily consumption products like juices, sigara mafuta . Someone should be creative enough and find ways of raising the economy .a government should be able to provide service for its people but not generate profits.the moment that kicks in then it leads cessation of its core objective . This is just me
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Rank: Member Joined: 3/3/2016 Posts: 132
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enyands wrote:
Eurobond money gotta be paid.no way out .no minerals to sell ,no oil to sell.so the culprit has to be taxes.
I personally believe raising taxes is a poor way of managing country's financial woos . There has to be a combination of spending cuts and tax hike on wealthy . Buy in kenya we are spending more than we can generate, and also we end up taxing more the poor with daily consumption products like juices, sigara mafuta .
Someone should be creative enough and find ways of raising the economy .a government should be able to provide service for its people but not generate profits.the moment that kicks in then it leads cessation of its core objective . This is just me
I think increasing the tax rates further will actually reduce tax collections. Classic example was Senator. Government raised taxes and volumes dropped by 70-80%. So even the doubling of taxes meant lower collection. This is a poor country and people seem to respond strongly to disincentives. Although official statistics point to strong growth, anecdotal evidence suggests weakening.: - Whenever I speak to business owners, they say last year was tough, and this year so far is tougher than last year. - Also nowadays when I go to the CBD, I always find parking. 3 years ago I had circle for half an hour especially on Saturdays. - Restaurants and shops all seem not quite busy from what I've seen. - Car imports have slowed over the last few years. - Profit warnings
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Very good government...awesome. possunt quia posse videntur
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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Plimsoul wrote:enyands wrote:
Eurobond money gotta be paid.no way out .no minerals to sell ,no oil to sell.so the culprit has to be taxes.
I personally believe raising taxes is a poor way of managing country's financial woos . There has to be a combination of spending cuts and tax hike on wealthy . Buy in kenya we are spending more than we can generate, and also we end up taxing more the poor with daily consumption products like juices, sigara mafuta .
Someone should be creative enough and find ways of raising the economy .a government should be able to provide service for its people but not generate profits.the moment that kicks in then it leads cessation of its core objective . This is just me
I think increasing the tax rates further will actually reduce tax collections. Classic example was Senator. Government raised taxes and volumes dropped by 70-80%. So even the doubling of taxes meant lower collection. This is a poor country and people seem to respond strongly to disincentives. Although official statistics point to strong growth, anecdotal evidence suggests weakening.: - Whenever I speak to business owners, they say last year was tough, and this year so far is tougher than last year. - Also nowadays when I go to the CBD, I always find parking. 3 years ago I had circle for half an hour especially on Saturdays. - Restaurants and shops all seem not quite busy from what I've seen. - Car imports have slowed over the last few years. - Profit warnings Saying business environment is tough is an understatement. Things are thick. I think only tenderpreneurs are smiling. I wonder how kibaki was hacking it to make business people happy punda amecheka
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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Plimsoul wrote:enyands wrote:
Eurobond money gotta be paid.no way out .no minerals to sell ,no oil to sell.so the culprit has to be taxes.
I personally believe raising taxes is a poor way of managing country's financial woos . There has to be a combination of spending cuts and tax hike on wealthy . Buy in kenya we are spending more than we can generate, and also we end up taxing more the poor with daily consumption products like juices, sigara mafuta .
Someone should be creative enough and find ways of raising the economy .a government should be able to provide service for its people but not generate profits.the moment that kicks in then it leads cessation of its core objective . This is just me
I think increasing the tax rates further will actually reduce tax collections. Classic example was Senator. Government raised taxes and volumes dropped by 70-80%. So even the doubling of taxes meant lower collection. This is a poor country and people seem to respond strongly to disincentives. Although official statistics point to strong growth, anecdotal evidence suggests weakening.: - Whenever I speak to business owners, they say last year was tough, and this year so far is tougher than last year. - Also nowadays when I go to the CBD, I always find parking. 3 years ago I had circle for half an hour especially on Saturdays. - Restaurants and shops all seem not quite busy from what I've seen. - Car imports have slowed over the last few years. - Profit warnings @plimsoul respectfully Iv never remembered a time when taxes collections reduced with increase in taxes. If you give me a for example either in jomo,moi or Kibaki regime that it ever worked. It's classically feasible in developed countries but not where we have a huge financial burden and obligations .people should find ways of dealing with tax evasion to begin with .that will solve half of the problems Paying taxes is good if its well managed. I don't mind paying 50 % if everyone is contributing their share if I have free medical, subsidized housing and all social programs are empowered but not leaders who stash their loot abroad.
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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enyands wrote:Plimsoul wrote:enyands wrote:
Eurobond money gotta be paid.no way out .no minerals to sell ,no oil to sell.so the culprit has to be taxes.
I personally believe raising taxes is a poor way of managing country's financial woos . There has to be a combination of spending cuts and tax hike on wealthy . Buy in kenya we are spending more than we can generate, and also we end up taxing more the poor with daily consumption products like juices, sigara mafuta .
Someone should be creative enough and find ways of raising the economy .a government should be able to provide service for its people but not generate profits.the moment that kicks in then it leads cessation of its core objective . This is just me
I think increasing the tax rates further will actually reduce tax collections. Classic example was Senator. Government raised taxes and volumes dropped by 70-80%. So even the doubling of taxes meant lower collection. This is a poor country and people seem to respond strongly to disincentives. Although official statistics point to strong growth, anecdotal evidence suggests weakening.: - Whenever I speak to business owners, they say last year was tough, and this year so far is tougher than last year. - Also nowadays when I go to the CBD, I always find parking. 3 years ago I had circle for half an hour especially on Saturdays. - Restaurants and shops all seem not quite busy from what I've seen. - Car imports have slowed over the last few years. - Profit warnings @plimsoul respectfully Iv never remembered a time when taxes collections reduced with increase in taxes. If you give me a for example either in jomo,moi or Kibaki regime that it ever worked. It's classically feasible in developed countries but not where we have a huge financial burden and obligations .people should find ways of dealing with tax evasion to begin with .that will solve half of the problems Paying taxes is good if its well managed. I don't mind paying 50 % if everyone is contributing their share if I have free medical, subsidized housing and all social programs are empowered but not leaders who stash their loot abroad. It can only work if you increase tax on income(PAYE, WT, Corporate tax etc) but if you increase import taxes,excise taxes and VAT it will only lead to reduced tax collections since people will most likely avoid consumption of the goods and services affected If Obiero did it, Who Am I?
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Rank: New-farer Joined: 1/15/2010 Posts: 81
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I seem to remember that when Nyachae was finance minister he reduced some tax rates and increased the amount of tax collected.
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Inflation tax sets consumers for fresh July price incre
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