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VAT BIll 2013 Politics
digitek1
#51 Posted : Tuesday, July 09, 2013 3:18:55 PM
Rank: Veteran

Joined: 2/3/2010
Posts: 1,797
Location: Kenya
McReggae wrote:
willin2learn wrote:
If basic things includes, unga, milk, textbooks etc my layman argument is that the cost of things goods have been going up as long as i can remember and its not because of VAT. I would therefore support the Bill if the Government shows a clear road map to plug other loopholes on lost taxes e.g. KRA,



So an overnight increase of 16% doesn't matter huh????

not really. prices go up all the time the market is inefficient
I may be wrong..but then I could be right
McReggae
#52 Posted : Tuesday, July 09, 2013 3:24:37 PM
Rank: Elder

Joined: 6/17/2008
Posts: 23,365
Location: Nairobi
digitek1 wrote:
McReggae wrote:
willin2learn wrote:
If basic things includes, unga, milk, textbooks etc my layman argument is that the cost of things goods have been going up as long as i can remember and its not because of VAT. I would therefore support the Bill if the Government shows a clear road map to plug other loopholes on lost taxes e.g. KRA,



So an overnight increase of 16% doesn't matter huh????

not really. prices go up all the time the market is inefficient


There is normal market forces and garment taxation, like the phombe prices jump the day new taxes are announced, infact with the VAT bill expect at least 20% price jump since the traders as usual watataka kukulia!!!!
..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
Tebes
#53 Posted : Tuesday, July 09, 2013 4:23:41 PM
Rank: Elder

Joined: 11/26/2008
Posts: 2,097
digitek1 wrote:
when tax exemptions are granted they normaly dont trickle down to the consumer. The best best is to expand the Vat net and leave market forces to sort out pricing



Ditto.

Whenever a company's goods are zero rated, they hardly lower the prices. When the size of bread was reduced to 400g, from 500g, the benefit did not cascade down to the consumer. VAT refunds have been a source of disputes/legal battles with the government, a perfect source of demand for kickbacks
"Never regret, if its good, its wonderful. If its bad, its experience."
King G
#54 Posted : Tuesday, July 09, 2013 5:06:09 PM
Rank: Elder

Joined: 6/20/2012
Posts: 3,855
Location: Othumo
Tebes wrote:
digitek1 wrote:
when tax exemptions are granted they normaly dont trickle down to the consumer. The best best is to expand the Vat net and leave market forces to sort out pricing



Ditto.

Whenever a company's goods are zero rated, they hardly lower the prices. When the size of bread was reduced to 400g, from 500g, the benefit did not cascade down to the consumer. VAT refunds have been a source of disputes/legal battles with the government, a perfect source of demand for kickbacks


Now we are talking. Exemptions dont help in the long run and is avenue for corruption. Let us tax everthing to be in the same level playing group. Kulipa ushuhuru ni kujitegemea
Thieves
butterflyke
#55 Posted : Saturday, July 27, 2013 11:21:09 AM
Rank: Elder

Joined: 5/1/2010
Posts: 3,024
Location: Hapa
C&P from the DN

The Finance Committee has bowed to pressure from various sectors and will ask MPs to increase the number of goods that are either zero-rated or exempt from Value Added Tax.

A report in the National Assembly by committee chairman Benjamin Langat (Ainamoi, URP) says the team will also remove unprocessed milk from the list of exempt goods because its sale is barred by the Dairy Act.

Despite the ban, unprocessed milk is sold in many parts of the country and the Treasury and Kenya Revenue Authority say that exempting it would cushion the poor.
Float like a butterfly, sting like a bee. - Muhammad Ali🐝
Shak
#56 Posted : Saturday, July 27, 2013 12:53:01 PM
Rank: Elder

Joined: 2/22/2009
Posts: 2,449
Location: Africa
I'm thinking, what if families living below a certain income level are registered and given some form of identification that affords them discounts on basic products at all stores and kiosks thus cushioning them from price increases resulting from introduction of VAT?
newfarer
#57 Posted : Sunday, July 28, 2013 5:31:58 PM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
there is a very important celebration coming:the Kenyan golden bash. we need this money fast.mps harakisheni hii bill tipate pesa.time is running out.
punda amecheka
newfarer
#58 Posted : Sunday, July 28, 2013 5:34:20 PM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
there is a very important celebration coming:the Kenyan golden bash. we need this money fast.mps harakisheni hii bill tupate pesa.time is running out. we don't need much. its a MERE measly shoestring budget of 2.5 Billion.
punda amecheka
washiku
#59 Posted : Tuesday, September 24, 2013 4:53:15 PM
Rank: Chief

Joined: 5/9/2007
Posts: 13,095
KRA: CLARIFICATION ON VALUE ADDED TAX ACT, 2013
Pursuant to Section 53 of the Value Added Tax Act, 2013 (“the Act”) the Commissioner General provides the following clarification in respect of the tax status of certain products covered by the Act.

Milk products

For the purpose of the Act, the term “unprocessed milk” shall include milk that has undergone heat treatment to eradicate harmful bacteria but for which no significant value addition has taken place, so as to change its essential character as milk meant for ordinary use, whether sold in packaged form or otherwise dispensed.

The clarification however excludes milk products not qualifying as milk for ordinary use including the following:
Flavoured milk,
Buttermilk,
Curdled milk,
Cream,
Yoghurt,
Kephir and other fermented and acidified milk and cream;

whether or not concentrated or containing sugar additives or other similar sweetening matter or containing fruits, nuts, cocoa or other similar additives.

Bread

The term “ordinary bread” as used in the Act covers all breads falling under tariff code 1905.90.90 and which are sold for general consumption including white and brown bread but does not include crisp and ginger breads primarily used in the catering industry.

Persons who require further support in respect of the matters above or any other matter concerning the VAT Act, 2013 should contact our support teams through email: VAT2013@kra.go.ke or telephones: 2817062/0711099999/4999999. You may also consult our website (www.kra.go.ke/index.php/vat2013/contacts)for additional details.
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