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Kenyans warn MPs that 2022 election is coming as they mull over Uhuru’s 8% VAT proposal

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The government risks losing about Sh100 billion it badly needs to fund this year’s budget if MPs gang up to shoot down President Uhuru Kenyatta reservations on the Finance Bill.

Among areas targeted in the memorandum include the eight percent levy on fuel products that will see about Sh17.5 billion realised, sugar confectioneries (Sh475 million), money transfers (Sh11.4 billion), betting companies and winners (Sh30 billion), the housing fund (Sh10 billion) and kerosene (Sh9.8 billion).

HUGE DEFICIT

On Tuesday, the National Treasury presented supplementary estimates to the House, proposing to slash its Sh3.026 trillion budget by about Sh55 billion.

If the MPs make good their threat to shoot down the president’s proposals during a special sitting on Thursday, it will leave the government sweating over how it will plug the huge deficit in the budget.

Of the entire budget, the Kenya Revenue Authority is only able to raise about Sh1.6 billion in ordinary revenue – including VAT on fuel products that the MPs have openly opposed on account that it will overburden the already overtaxed Kenyans.

Treasury Cabinet Secretary Henry Rotich when he appeared before the Finance and National Planning Committee of the National Assembly on September 19, 2018. PHOTO | FILE

On Tuesday, President Kenyatta formerly cited his reasons to MPs for returning Finance Bill, 2018 to MPs for reconsideration.

READ ALSO:   IN PICTURES: Uhuru at the White House

The bill – which was passed two weeks ago – gives the government the legal framework to finance its budget.

ROTICH’S PLEA

Yesterday, National Treasury Cabinet Secretary Henry Rotich pleaded with the MPs to consider the bill with the President’s proposed changes.

“We reformed the tax law in 2013 because almost everything – about 435 items were tax exempt. This was done to expand the tax base because over time, we have been losing revenue because of the narrow tax base,” Mr Rotich told the MPs.

The committee chaired by Kipkelion East MP Joseph Limo is considering the president’s memorandum on the bill that has also proposed to delete the 0.05 percent ‘Robin Hood’ tax, which had been proposed on money transfers of at least Sh500,000.

The CS instead announced that the government plans to recoup lost revenue through the 20 percent imposed on the charges the banks levy customers in money transfers, meaning that the transfer charges could still go up.

There is also a new proposal to increase the price of kerosene by Sh18 per litre, to check adulteration of fuel, as well as split the current 35 percent tax on betting companies to include the winners.

MITIGATION MEASURES

READ ALSO:   VIDEO: "All lives Matter," President Kenyatta of Kenya tells Washington Forum

But even as the government does this, it is yet to put mitigation measures – zero rating of liquefied petroleum gas (LPG) and increasing cheap electricity connection, to cushion the poor from the high prices.

Currently, the government is only able to raise about Sh8.7 billion in the betting industry.

This will see betting companies charged 15 percent on top of the 30 percent charged in terms of corporate income and winners 20 percent.

“This is a punitive taxation measure. If you want to engage in the luxury of betting, you give the exchequer money,” Mr Rotich said.

THE VOTE

The committee is required to table a report recommending its adoption or rejection on Thursday morning.

It will require at least two- thirds or 233 of the 349 MPs to either alter the president’s view or shoot it down all together.

The MPs were also united against the taxes on sugar confectioneries, arguing that it will make the country uncompetitive in the region in terms of manufacturing – sweets, candies, biscuits, chocolate and other products.

“Why discourage local manufacturers?” Mr Limo posed. “Kenya is the centre of confectionery in the East African region. This levy may lead to uncontrolled importation,” he said.

READ ALSO:   VIDEO: New comer Muthiora Kariara shines as others stay away

Mr Rotich explained that the levy on the confectioneries is one of the sin taxes imposed by the government to regulate the consumption of such products.

He argued that the cost of treating complications related to the consumption of the products far outweighs the benefits.

“We are here complaining about the tax yet we are spending more on health challenges. By discouraging this, you are protecting the health of Kenyans, including children. This provision is meant to raise revenue for development,” Mr Rotich said.

“These are the recommendations of the World Health Organization (WHO) and it is where the world is headed.”

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Business

MANY PHOTOS of the spectacular retirement home Sarah Kabu gifted her husband on his birthday

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Kenya’s Bonfire adventures MD, Sarah Kabu did the unimaginable for her husband over the weekend, after making a multi-million purchase of a retirement home for her husband, a dream come true on his birthday.

The famous Jabo Jabo couple gave fans a look into their simple yet rich retirement home during the celebrations that went down in Olpajeta, Nanyuki.

Inside Kabus retirement home

The pair gave us a look of the home’s exterior, fitted with large glass windows as walls of the different rooms upstairs, each well furnished with rare exotic African furniture.

The Kabus on baecation

Surrounded with bushes and trees at a distance, the couple did not think much of having a fence around their home, open to all who would pay a visit, with a sign board at the entrance with the words “Welcome to The Kabus retirement home.”

The front yard graced the parking lot while the backyard would be where the couple hosted their social events. With long dining tables and outdoor canvas seats setting the mood for a communal feel, allowing us a view of the large projecting balcony the duo had to enjoy the priceless views of the wild.

Sarah gifts Simon Kabu dream retirement home

In the presence of close friends and family, Mr Kabu was treated to a magnificent birthday event by his wife, Sarah who made his dreams come true with the surprise of his dream retirement home in the wild.

READ ALSO:   VIDEO: Kabogo says he is a good man, warns his opponents

For Simon, as they drove through bushes and thickets, he first thought they were having a bush lunch only to his surprise to discover that his wife had brought to reality, his plans to own a private getaway in the wild when he needed to unwind from the city’s hustling.


The Kabus

Every time the couple would visit the Olpajeta conservancy, Simon would always wishfully admire “ningetaka kuretire hii place” but after Corona happened, his plans stalled. Hardly did he know that his wife was busy taking huge bank loans to give him his dream retirement home. What a love!

Have a look at the Kabu’s rich retirement home.

The Kabus

Kabus

Sarah &Simon Kabu

The Kabus getaway

Simon Kabu birthday

Mr Kabu birthday

Kabus’ retirement home

Inside The Kabus retirement home

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Business

The Sun is now Setting on your Chance to be Part of Amani Ridge the Place of Peace

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With only 26 plots measuring 1/4 acres remaining, the window to own a plot of land at Amani Ridge the Place of Peace is now closing. As this is happening, the cost of these plots is now set to move up by 20%.

Here is the good news though; you still have a chance to secure your property before this change takes effect.

As this window slowly closes, the value additions are tripling as we are now headed to start internal roads murruming before we finally lay cabro on the same streets. On the other hand, the Kenya Power contract to lay underground power is right on the heels.

At the same time, the Razor Wire installation on Wall of Happiness and Wall not Knowledge (1.4Km in length) is also set to start next week.

Meanwhile, we are heartily celebrating the completion of the four walls surrounding this top gated community in Kiambu (Wall of Peace, Wall of Wisdom, Wall of Happiness and Wall of Knowledge).

As we share this update, the laying of paving blocks (cabro) on a one acre gate-area is ongoing as you see on the accompanying photo.

This cabro works on the estate’s driveway has been designed to give all families and visitors coming into this gated community an inviting welcome.

READ ALSO:   Meet the British Woman behind some of the most fiery Uhuru speeches as presidential candidate

Do you want to know how to be part of Optiven Family?

Call us now: 0790300300 or 0723400500
Website: www.optiven.co.ke

Experience the difference

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Business

What’s Happening at Victory Gardens – Kitengela

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Effectiveness of Gated Communities in Providing Safe Environments for Childrens’ Outdoor Convenience

Due to safety factors, children use of outdoor spaces can be limited.

Victory Gardens, a residential gated community with access control and guarded area has been deliberately developed to give parents peace of mind as they get about their daily business without worrying so much about the safety of their children.

The Children’ Play Park along Mwangaza Avenue was also designed with children that are brought up in this gated community in mind.

This project’s Care Taker, Mr. Ondiek and his team have a brief to make sure that the grass is well manicured to make this space as safe as possible for children.

Why not secure a site visit and invest in your children future?

Call us on: 0790300300 or 0723400500
Website: www.optiven.co.ke

 

~Experience the difference ~

 

READ ALSO:   VIDEO: "All lives Matter," President Kenyatta of Kenya tells Washington Forum
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