KTalker arguing about Kenya’s Tax Base

Ushasema

There is no tax on Kerosene. There are levies but no taxes on Kerosene.No money from kerosene goes into the budget. The levies go directly to various funds like the Railway Development Fund, PDF,PRF etc
Paying VAT does not make you a taxpayer, otherwise, then tourists are taxpayers too.It is not like they are exempt from VAT. Ugandans pay custom duty, that does not make them Kenyan taxpayers any more than you paying VAT.
When people talk of taxpayers, you must have a KRA PIN which you file returns to.Have you ever filed tax returns with your supermarket receipts??? and all that VAT 47 million Kenyans pay is only half of the income tax 2.9 million Kenyans pay, and those Kenyans also pay VAT. (and a third of VAT comes from companies, meaning individual VAT payers contribute very little to Government coffers)So please, if you do not pay Income tax or Corporate Tax, it means you do not file returns and are not counted as a taxpayer.

from Google…

levy verb

  1. impose (a tax, fee, or fine).
  2. enlist (someone) for military
    service.
    noun
  3. an act of levying a tax, fee, or
    fine.
  4. an act of enlisting troops.

So are you claiming that Tourists have the right to have a say in our economic policies, since like you, they also pay VAT???
Show me any place on this planet where a person who does not file tax returns is considered to be a taxpayer.

@GERALD9949

From the business Daily…

The introduction of a Sh7.20 per litre
TAX on kerosene has failed to curb
the mixing of the fuel with diesel and
petrol for use in cars, the energy
regulator has said.

The variation in prices is mainly due
to the different taxes given that
petrol has an excise duty of Sh19.89
a litre while the levy on diesel stands
at Sh8.24.
Diesel and petrol also attract a road
levy charge of Sh12 a litre that is
NOT applied on kerosene.

http://www.businessdailyafrica.com/news/Kerosene-tax-fails-mixing-fuel/539546-3892530-2fd67d/index.html

it failed.
And it was removed.
As the article clearly states.
That sh7.20 tax is not there anymore.The Government long shifted to LPG in a bid to phase out Kerosene altogether.
In case you havent’t noticed, petrol stations like Shell no longer sell Kerosene(at petrol stations.They sell at airports though)

I am not a Guru in mamabo ya Economics i.e ( Tax ) but agree with @GERALD9949 with the way we are Taxed. Even Jesus in the older times , on being challenged about Tax, He quoted the famous cliche " Ya kaisari ni ya kaisari " so therefore everone of the 18 to 20 million workforce shud pay Tax period.

If we did, we would go very far. If we manage to raise over a trillion from 2.9 million taxpayers, imagine if at least 15 million were active taxpayers.Not even corruption would stop us from reaching middle income status

@GERALD9949 wewe wacha maongo. kerosene is still taxed. stop making things up. mara you say sijui a levy is not a tax. A levy is a tax and KEROSENE IS TAXED.

And about VAT, pia uwache maongo bwana. Njiraini said in 2014 for instance that VAT stood at 24.2% of total tax revenue. That is Ksh.233.2 billion out of 963 billion collected that year. Hio sio pesa kidogo wewe. A quarter of total tax collected came from VAT.

He further said income tax is very distortionary. Only 5% of Kenya’s total population pay income tax and a good majority ni Pay As You Earn which is only 12% of total taxes collected.

In fact customs revenue is another main backbone of our economy at 28.3% of all taxes collected in 2014 which came to Shs 331.8 billion out of 963 billion.

Alafu medium and small firms at 19.6 per cent or 197.3 billion of the total 963 billion collected.

And in Kenya because a huge proportion are not in formal employment you can’t say that the only people who pay tax are those who queue at KRA. Kwanza majority yao wanadanganya ati zero returns for that year. mtu anauza gari for a living na anasema he sold nothing
in two years.

And as for tourists having a say on the economy… isn’t that quite obvious? Of course they do. Tourists bring a huge cake to the Kenyan economy through taxes as well. How many times have you seen the president begging wazungus to remove travel bans and come back to Kenya or roads being built specifically for tourists. Their contribution is immense.

@GERALD9949 and when you say that a third of VAT is paid by companies what do you mean? Doesn’t VAT come directly from the consumer? I mean the companies are always passing the buck to the consumer.
For instance that VAT on the supermarket receipt ni nani amelipa? si ni customer? Are you then saying that there’s another VAT that the supermarket pays for the same commodity again?

All the money small traders pay daily in markets and roadsides throughout Kenya kwani inaenda wapi? you want to say those are not supposed to be called taxpayers because hawana pin?

Huyu njiraini anafaa achapwe makofi atuambie the truth. These figures they give are a not a true representation of facts. For instance there’s even a standing tax just for owning a water meter. You have not had water for months but you still have to pay.Why? How much taxes does the govt. collect through such stealing?

The electricity people still charge for garbage collection! There used to be a charge for non existent trash bags.

And this economic fallacy ati big companies pay the most tax, kwani who are the main stakeholders of these companies? It is the people. They even have an awards ceremony for biggest tax payer which i think should be rewarded to all Kenyans. Without the people there’s no safaricom or Kenya breweries. So, when the govt. taxes Safaricom it’s just taking our money. And I highly doubt they declare all the taxes they’re supposed to declare.

Tax ni tax.hata ukiipa majina sijui levy, sijui nini.
Ni ushuru

It’s not free I work for it Brother. I am on call 24/7,365 days a year my leave can be terminated at will or Incase of emergencies? I don’t think the same applies to you in all fairness.

There are exemptions,but majority of the informal jobs do not pay well and my assumption is most are actually paid below the taxable limit - so you might be adding 15m new returns and that might not change the total collection much, actually the logistics needed for that addition might end up reducing the collections.

You are. Only the 2.9m can legitimately pull the ‘overtaxed’ card.

On that, you’re right. You made an assumption.

It seems people just love giving away their money when they argue that we’re not overtaxed. I don’t know about them but I work too hard for my money and hate giving it away especially when it’s getting wasted and stolen. :confused:

Every Kenyan who buys taxed products pays taxes. Those taxes run into billions of shillings every year. They have a right to say they’re overtaxed.

On what basis? The formally employed has already paid their PAYE (direct taxation) and now has to pay VAT (indirect taxation).