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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:   Uhuru escalates war on graft as he targets Ruto-allied CSs

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: Nkaissery, a social dude who loved his cold Tusker and friends

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.

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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.”

Nation.co.ke

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Business

Safaricom achieves 50pc female employees target

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Safaricom says it has achieved 50 percent share of female employees on its payroll, coming amid an increase in the number of direct and indirect jobs it sustained in the last financial year growing nine percent to 979,000.

This is according to the telco’s 2019 Sustainable Business Report released on Thursday in which the firm also announced a plan to plant five million trees in the next five years as part of a carbon offset programme.

“We have achieved a 50:50 gender balance among our employees and 34 percent of senior management are women. In addition, 2.1 percent of our staff are persons living with disabilities,” the report notes.

In the year under review, the firm says 178 women-owned businesses were pre-qualified under its Women in Business initiative.

The firm supports 167,083 M-Pesa agents, 433 dealers, 1,138 suppliers, 4,503 permanent employees as well as other stakeholders.

The company had a staff headcount of 6,323 (permanent and contract staff) as at March 2019, an increase from 6,130 in 2018.

The latest Sustainable Business Report also notes that the telco disciplined 78 staff in the last financial year, even as an earlier released annual report had indicated that Safaricom fired 31 employees in the year ended March 2019 over fraud.

READ ALSO:   BREAKING: Why Uhuru has extended Huduma Namba registration deadline to May 25th

“We consistently review our compliance with regulatory obligations, particularly those surrounding fraud, corruption and anti-money laundering legislation,” the report adds.

by nation.co.ke

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Job Vacancy: Business Manager

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We are seeking an experienced Business Manager to lead and oversee the work of employees in our Optiven Construction company.  The eligible person will be responsible for ensuring the efficiency of business operations as well as setting strategic goals for the future.

Optiven Construction Company is based in Kitengela, Namanga Road, Acacia Junction, we are known to be the leading manufacturing company in construction items majorly Cabros, Hollow Blocks, Paving Slabs, Road Channels, Road Kerbs, Wall Copings, Culverts, Louvers, Fencing poles and many others.

The successful candidate will be a competent leader able to provide guidance that enhances performance in a manner which incorporates the company’s vision and culture. The goal will be to ensure the profitability of our company’s activities to drive sustainable development and long-term success.

Reporting to: Company Directors.
Location: Kitengela

Duties and Responsibilities

Business Development & Marketing

  • Developing business management goals and objectives that lead to growth and prosperity.
  • Designing and implementing business plans and strategies to promote the attainment of goals.
  • Maximizing new business development opportunities for the organization.
  • Gathering, analyzing and interpreting external and internal data and write reports.
  • Coordinating activities that affect operational decisions and business requirements.
  • Representing the company in meetings and events i.e. exhibitions, conferences, Activations and other construction or real estate projects.
  • Identifying and targeting areas in which a business can improve operation
READ ALSO:   BREAKING: Why Uhuru has extended Huduma Namba registration deadline to May 25th

Procurement Management

  • Maintaining relationships with vendors & suppliers.
  • Participating in purchases of materials and services required for production.
  • Ensuring effective purchases of raw materials without compromising quality & with price sensitivity.
  • Ensuring that the company has the adequate and suitable resources to complete its activities (e.g. material, equipment etc.)
  • Sourcing for bids and tenders & coordinating with internal departments for Supply.
  • Proposing the best technical and economic solutions (quality, cost & deadlines)
  • Communicating any changes in the order or delivery date to relevant parties.

Financial Management

  • Assessing overall company financial performance and report on daily sales and production.
  • Monitoring revenue margins, maximizing revenue through innovative sales practices and yield management programs.
  • Preparing financial projections, reports and targets and reporting to the directors on a Monthly at times weekly basis.
  • Advising management on financial related matters.

People Management

  • Ensuring adherence to legal rules and guidelines.
  • Determining hiring needs, overseeing assignment of employees and planning staff development.
  • Overseeing employees’ productivity.
  • Organizing and coordinating operations in ways that ensure maximum productivity.
  • Supervising the work of employees and provide feedback and counsel to improve efficiency and effectiveness.
  • Motivating, mentoring and providing direction to the team

Customer Relationship Management

  • Be fully conversant with the commercial and technical requirements of customers.
  • Discussing monthly customer complaint reports with the management and offer solutions.
  • Meeting existing and potential clients, identifying and gathering their specific needs at an early stage.
  • Securing the relationship with the clients until the achievement of their projects.
  • Be the face of company and day to day point of contact with clients in all regions.
READ ALSO:   Uhuru escalates war on graft as he targets Ruto-allied CSs

Requirements: – Abilities, Knowledge and Skills

  • Bachelor’s degree in Marketing, Business Administration, Accounting, Finance, Economics or Civil engineering.
  • Great Exposure to Sales and Marketing Initiatives
  • Strong communication, organizational, presentation and negotiation skills
  • Ability to take ownership, working independently and meeting deadlines
  • Possess personal qualities of integrity, credibility, and commitment to company mission
  •  Ability to engage and motivate others.
  • Strong reporting skills.
  • Excellent in developing customer relationships and customer service
  • Professionalism, high level of maturity, good character with positive values

Applicants who meet the above criteria are required to send their applications torecruitment@optiven.co.ke with “BUSINESS MANAGER” being the subject of the email and with detailed CV,names & addresses of three referees.  Only shortlisted candidates will be contacted.

Note: We do not charge any fee for recruitment.

 

 

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DPP Haji now targets Keroche power couple with Sh14 billion tax evasion suit

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DPP Noordin Haji has ordered for the arrest and arraignment of Keroche Breweries directors Tabitha Karanja and Joseph Karanja for allegedly evading taxes amounting Sh14.45 billion since 2015.

In a statement to newsrooms, the DPP said investigations revealed that the directors could be culpable of 10 counts of tax fraud between January 2015 to June 2019.

The DPP said the KRA commissioner general submitted an inquiry file to his office on August 18 and an audit by KRA established that Keroche Breweries had evaded payment of tax tallying to Sh14,451,836,375.

The amount evaded, according to the DPP, included stamps valued at Sh329,424,019, Crescent Vodka brand valued at Sh135,402,950 among other products registered under the company.

The exercise duty evaded on the said products, according to KRA, amounted to Sh2,101,846,768 billion.

IN PUBLIC INTEREST

The DPP says that he is satisfied that there is sufficient evidence and that it is in the public interest to charge the suspects with 10 counts of tax fraud contrary to the Tax Procedures Act of 2015.

For more than a decade, Keroche has been battling with Kenya Revenue Authority over tax arrears the brewer owes the taxman.

In 2017, a three-judge Court of Appeal bench ruled that KRA had abused its powers by sending a tax demand of the three tax heads and penalties amounting to Sh1.1 billion through a letter dated November 29, 2006.

READ ALSO:   VIDEO: Nkaissery, a social dude who loved his cold Tusker and friends

The ruling was the third in the 10-year battle in favour of the brewer, which gave them a fresh lease of life to the 20-year-old Keroche.

The letter was dismissed as unreasonable because it had come without an accompanying schedule of details of the said assessment and without proper notices.

The revenue authority had appealed an earlier decision by the High Court on July 6, 2007, where Justice Joseph Nyamu had prohibited the taxman from demanding the taxes, citing “abuse of powers”.

The taxman, who was also demanding an additional Value Added Tax of Sh305 million, was basing the tax bill on an assessment carried out in 2006, where some Keroche products had allegedly not been given the right classification, hence being subject to lower taxation.

by nairobinews

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