Can someone please explain to me in a laymans language what the stamp Duty changes mean to us.

I am in the process of buying a house but still in the early stages and have been dragging the process to see if they will scrap the "thuggery" STAMP DUTY. I read the PDF in the Nation articles 143-147 on page 30 and didn't get the percentages right.

The current rate for stamp Duty is 1% of the property value and I didn't understand what the new rates per Mr. Muigai.

Someone please shed the light on those numbers and if possible a little info on the land rates...

Okay so the budget has been read. What's your take - Will this budget actually raise productivity and improve the business climate?


Thompson Reuters, Fact Box:

IMPORT DUTY MEASURES:

* Lower duty paid on wheat to 10 percent from 35 percent for a year, to enable millers supplement local production.

* Drops import duty on rice to 35 percent for one year from 75 percent.

* Removes import duty on petroleum coke, a key ingredient in cement manufacture, to boost construction. Building and construction sector was one of the star performers in 2009.

MORTGAGES

* Halves stamp duty fee paid on mortgages, charges and debentures to 0.1 percent from 0.2 percent to encourage investors.

* Proposes to raise core capital banks allowed to invest in mortgage financing to 40 percent from 25 percent.

EXCISE DUTY:

* Increase excise duty for malt beer to 65 shillings per litre from 54 shillings and that on non-malt alcohol to 55 shillings from 45 shillings per litre.

VALUE ADDED TAX:

* Kenya Revenue Authority to refund all new VAT claims that meet a low risk criteria within 120 days and will impose the most severe penalties in law on those found participating in fraud.

REMITTANCES:

* To grant amnesty on law requiring remittances to be declared to encourage Kenyans in the diaspora to send money back home for investment.

ISLAMIC BANKING:

* To amend law to allow interest-free Islamic banking.


Budget Presentation:
Time marked...http://www.nation.co.ke/News/Uh...0/-/10oaqd2/-/index.html

I would like clarification on the pension information where schemes will pay early? what is the position?

I like this bit:

For property buyers, stamp duty penalty was cut from 25 per cent to 5 per cent of the principal amount to encourage uptake of land and houses, as that on mortgage reduced from 0.2 per cent to 0.1 per cent.

talk about cosmetic changes...

@ theman192000

Methinks that the budget is built on a foundation of wishful thinking, creative accounting and crossing fingers. What makes it sort of work out is the kawa mwananchi...like you and me!

Example:
On unveiling the full EAC goodies expected later this July, trade in the region jumped 47%, banks went on a regional expansion spree, and hustler conversations huko downtown were peppered with tales of rich pickings in Rwanda/Sudan etc. By 2007, the trade balance stood in favour of Kenya to the tune of ½ a bn USD.

Like Mzee Biden pointed out, Kenya happens to be one of THE wealthiest non-mineral sub-saharan economies; this, thanks to the hard work and ingenuity of its citizens and not those white-haired empty suits at Treasury.

TheMan; fold up your sleeves, get your game face on and prepare to make Uhuru proud .

You'll be able to get ur retirement savings within 30 instead of 60 days of retirement.

For those still working, I expected a widening of the tax brackets but it seems there were no changes. Tax Relief still 1,162/=. Taxing of those earning only, is it, 10,164/=! and MPigs paying no tax. How unfair.