Njiraini speaks: VAT to go up to 18%, Mumias ifungwe, air fares set to rise, your powerbill will shoot up etc.,

News & Politics
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Nation walikuwa,wameweka picha ya Njiraini since he shares a name with the author of the article kisha wakatoa.

Sasa STATUS QUO hata hawafichi, reli lazima ilipwo. James Mwangi alisema jana. Haraa! Razima muripe.

KRA Okuyu now declares even tougher measures will soon be in the offing.

[SIZE=6]Fuel prices: Pain at the pump set to get worse[/SIZE]

https://mobile.nation.co.ke/image/view/-/4742444/medRes/2098671/-/j070v1z/-/FUELPIC.jpgA pump attendant fuels a matatu at a petrol station in Nyeri on September 2, 2018. PHOTO | FILE | NATION MEDIA GROUP
By NJIRAINI MUCHIRA
More by this AuthorIN SUMMARY
[ul]
[li]One is increasing the general VAT rate to 18 percent, hurting the ordinary citizen as much as the tax on petroleum products.[/li][li]Treasury expected to raise Sh71 billion from the fuel tax.[/li][li]Analysts say the Treasury should broaden its tax base and cut on spending in order to control the budget deficit, which is around Sh559 billion this year.[/li][/ul]
Kenyans hoping President Uhuru Kenyatta to delay the implementation of the 16 per cent tax on fuel should be ready for another shocker as the National Treasury fights to have its way.
Assenting to the amendments made by MPs to delay the 2013 Value Added Tax law until 2020 would leave a gaping hole in the budget for which the Treasury has two alternatives to fill. One is increasing the general VAT rate to 18 percent, hurting the ordinary citizen as much as the tax on petroleum products. Treasury expected to raise Sh71 billion from the fuel tax.
Without it, the target from VAT would be drop to Sh399 billion, assuming the Kenya Revenue Authority is perfect in its performance.

SPARE FUEL

Should Treasury opt to raise VAT on products already in the net to 18 per cent and spare fuel, it would realise an extra Sh49 billion but remain with a Sh22 billion hole.
That would probably be filled through borrowing, the second option National Treasury Cabinet Secretary Henry Rotich has.
RELATED CONTENT
[ul]
[li]Kenyans feel pinch of high fuel prices[/li][li]Crippling fuel shortage looms[/li][li]Travellers hit as matatus raise fares - VIDEO[/li][/ul]
Both would be unpopular as Kenyans believe the national debt, standing at Sh5.1 trillion, is the main reason for the heavy taxation, which is undermining the ability to generate wealth.
“If the measure is not implemented, it will require alternative financing either through borrowing or additional tax measures, including reviewing the VAT rate to 18 percent, like the other East African Community countries,” a Treasury paper seen by the Nation says.

INCREASE FARES

The options under consideration came to light as the impact of the fuel VAT hit homes and businesses countrywide. Outrage greeted the increase in matatu fares on Monday.
Elsewhere, operations at Mumias Sugar Company are expected to grind to halt if the firm fails to review the contracts for transporters. That would mean less money going to farmers for the cane sold. With jet fuel also affected by the tax, air tickets will go up.

The Energy Regulatory Commission is also expected to hit consumers with electricity tariff increases in fuel cost adjustments that are usually loaded to bills.
Before the VAT increase on September 1, the fuel cost adjustment was Sh2.50 per unit.
Should the President not indulge Kenyans, attention will turn to the courts where Mr Okiya Omtata has filed a case seeking to stop the increase.

HIGHER ENERGY PRICES

The tax measure is expected to lead to a new round of retail price inflation as a result of higher energy prices that will impact on the cost of production, transport and electricity.
READ: Travellers hit as matatus raise fares - VIDEO
Economists expect the wave of consumer price increases to slow the demand for goods and services, meaning Kenyans’ purchasing power would be eroded.
The inflationary stress may also exert pressure on the shilling.
With diesel accounting for about 40 per cent of the fuel products sold in Kenya and chiefly used in public and cargo transport, the increase is bound to affect every aspect of life.
Analysts say the Treasury should broaden its tax base and cut on spending in order to control the budget deficit, which is around Sh559 billion this year.
The pain of higher fuel costs will be borne by Kenyans who are already saddled with VAT on essential goods such as cooking gas, electricity, exercise and text books as well as mobile phones.

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ebu angalia bei ya mafuta hapa

[ATTACH=full]191293[/ATTACH]

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Enyewe ilikuwa 102 hapo. Na dithuru 109. Kerosene sigisti sefen twedy.
Leo kerosene ni abaf 90. Kimeumana!!

Naona pia they accept major cards. Kuna tyre center na Kgas pia.

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Haki ya Mungu! It is depressing to be a Kenyan.

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hio haiwes leta maandamano. Rakini semeni hague tena ama isemekane tena kiriibiwo na kinafaa kirudiwo, mwuone murudiko wa raiya kwa farafara. Warudishe mashaitani.

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wah!!!

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Muhudumu ongeza lube ♪♪

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Good old days

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where are we wadau…
The Two Cows Example of Political Philosophy begins with two cows.*
FEUDALISM:
You have two cows. Your lord takes some of the milk.
PURE SOCIALISM:
You have two cows. The government takes them and puts them in a barn with everyone else’s cows. You have to take care of all the cows. The government gives you as much milk as you need.
BUREAUCRATIC SOCIALISM:
You have two cows. The government takes them and puts them in a barn with everyone else’s cows. They are cared for by ex-chicken farmers. You have to take care of the chickens the government took from the chicken farmers. The government gives you as much milk and as many eggs as the regulations say you should need.
FASCISM:
You have two cows. The government takes both, hires you to take care of them, and sells you the milk.
BUREAUCRACY:
You have two cows. At first the government regulates what you can feed them and when you can milk them. Then it pays you not to milk them. After that it takes both, shoots one, milks the other and pours the milk down the drain. Then it requires you to fill out forms accounting for the missing cows.
PURE COMMUNISM:
You have two cows. Your neighbors help you take care of them, and you all share the milk.
APPLIED COMMUNISM:
You have two cows. You have to take care of them, but the government takes all the milk.
DICTATORSHIP:
You have two cows. The government takes both and shoots you.
MILITARIANISM:
You have two cows. The government takes both and drafts you.
PURE DEMOCRACY:
You have two cows. Your neighbors decide who gets the milk.
REPRESENTATIVE DEMOCRACY:
You have two cows. Your neighbors pick someone to tell you who gets the milk.
AMERICAN DEMOCRACY:
The government promises to give you two cows if you vote for it. After the election, the president is impeached for speculating in cow futures. The press dubs the affair “Cowgate”.
BRITISH DEMOCRACY:
You have two cows. You feed them sheeps’ brains and they go mad. The government doesn’t do anything.
SINGAPOREAN DEMOCRACY:
You have two cows. The government fines you for keeping two unlicensed farm animals in an apartment.
ANARCHY:
You have two cows. Either you sell the milk at a fair price or your neighbors try to kill you and take the cows.
CAPITALISM:
You have two cows. You sell one and buy a bull.
HONG KONG CAPITALISM:
You have two cows. You sell three of them to your publicly-listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt / equity swap with associated general offer so that you get all four cows back, with a tax deduction for keeping five cows. The milk rights of six cows are transferred via a Panamanian intermediary to a Cayman Islands company secretly owned by the majority shareholder, who sells the rights to all seven cows’ milk back to the listed company. The annual report says that the company owns eight cows, with an option on one more. Meanwhile, you kill the two cows because the fung shui is bad.
ENVIRONMENTALISM:
You have two cows. The government bans you from milking or killing them.
TOTALITARIANISM:
You have two cows. The government takes them and denies they ever existed. Milk is banned.
POLITICAL CORRECTNESS:
You are associated with (the concept of “ownership” is a symbol of the phallocentric, warmongering, intolerant past) two differently-aged (but no less valuable to society) bovines of nonspecified gender.
COUNTERCULTURE:
Wow, dude, there’s like… these two cows, man. You have got to have some of this milk. I mean totally.
SURREALISM:
You have two giraffes. The government requires you to take harmonica lessons.
THERAPYISM:
You have two cows. One is a metaphor for your inner child. The other is the manifestation of anger toward a parental figure. You take one of the cows on walks through grassy fields by the gentle ocean waves. The other you beat with an anger bat.

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in 2016 petrol at one time sold for 92 bob. and late last year it rose 6 bob from 98 bob to 104, the recently to 107, then 112, then 127. i dont see whats so special about that price there. that day i was in nyeri and people were saying that the rain is a blessing because of passing through of muthamaki and they seemed to have that conviction.

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Muthamaki aliuza sisi!!

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Mimi sina shida na 16% VAT on fuel, I just have a problem on how it’s calculated. They should apply it on the landed cost of fuel only, which will reduce the amount of VAT from 14 bob to around 9 bob per litre.

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VS we all know the end game for this tax is to squeeze as much money as possible from people, for them VAT tax is just a excuse. Kungekua na tax kubwa more than VAT wange levy hio. Sad

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True, when the economy stagnates ndio watajua they made a mistake, but it will be too late. Uganda is the net beneficiary here.

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You cant tax a country into prosperity.

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BUREAUCRACY:
You have two cows. At first the government regulates what you can feed them and when you can milk them. Then it pays you not to milk them. After that it takes both, shoots one, milks the other and pours the milk down the drain. Then it requires you to fill out forms accounting for the missing cows.

This is the worst form

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[MEDIA=giphy]w62miwiD5guMmxZCRr[/MEDIA]

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You can’t tax people to prosperity yet you dont provide basic services.
Kuna a good friend of mine in treasury has told me if Uhuru rejects this tax, Vat will rise to 18% and Income Tax for higher earner will be hit hard, possibly two more tax band created. Anasema Rotich is more than determined to find money no turning back. Na kuna big possibility Uhuru may not sign the Law as StateHouse or Him have not even said anything to this regard. They are testing the waters to see if its just a few days complains.

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Kama TBT!

Good old days

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