The top 50 most profitable companies on earth each earn more for their shareholders than what KRA collects in a year.
Yani there are over 50+ companies that earn more than what the government of Kenya earns from tax even after overtaxing citizens.
Evidently, Kenya needs homegrown megacorps to pay the taxes and employ graduates.
Apple alone pays the US government over $10 billion in corporate taxes. Its 154,000 employees also pay over $10 billion in income tax to Uncle Sam. One company contributes what the entire tax base of Kenya contributes after being overtaxed to the eyeballs. KRA collected about $17 billion last year.
The best way to grow economically is to have many large multinational companies domiciled and listed here. Everything else follows.
Did you know that 3% of the total tax collected last year (2.031 trillion) was from corporate taxes paid by Safaricom, Equity, and KCB.
This does not include the PAYE their thousands of employees remitted to KRA. It also doesn’t include all other ways that the employees and local shareholders (after spending dividends) were taxed e.g through V.A.T.
The impact of corporations is HUGE. The key to a successful economy is having large profitable multinational corporations owned by local shareholders and employing thousands of locals.
Bonobo economics. A majority of people in developed countries are employed by small businesses.
Another thing Mr bonobo economist, corporations pay very little tax as a percentage of the total revenue collected. Kwanza hio example ya Apple paying 10 billion dollars ni ya kijinga sana;last year they paid just 14 billion dollars to the taxman from profits za 94 billion dollars. Yani 13 %. Corporations engage in tax avoidance the world over.
Angalia kama US composition ya corporate taxes
If you were some smart ass, you’d be encouraging the government to create an enabling environment for small businesses which create the bulk of the employment not these mega corporations.
You are arguing against yourself here gathee. I said they are significant contributors of tax revenue. I did not say that they pay at a higher rate than small businesses - that’s your bonobo head arguing against itself. Typical.
Read → Misinterpret → Try to sound smart by arguing against what you misunderstood.
Lastly, corporations also employ thousands of employees who pay at the highest rate of 40.7% so your point is kinda retarded. No country has ever developed from third to first world without megacorps - NONE. Even South Korea had Samsung and LG.
Before you argue just to sound smart without thinking critically, Switzerland has over fifty billion dollar companies (by market cap) and a population of just 8.74 million people. They have among the highest standards of living, highest GDP per capita, and highest life expectancy in the world. There is a very strong correlation between megacorps and economic benefits to a country including its tax base. You’d have to be a total moron to ignore that obvious correlation.
They are. Haina point ya kuargue na mtu hajui hesabu. Someone who can’t think outside the box. Hiyo 40.7% ya individual taxes is because corporations provide employment but you are too slow to see that link. Kumbuka corporate employees can’t dodge income taxes like lower earning jua kali workers. They earn higher on average and can’t escape the tax dragnet. Secondly, megacorps spend money and pay even more taxes indirectly on the products and services they procure. Lastly, dividends distributed to local shareholders are mostly spent locally. Governments are much smarter than you bonobo. When they give these megacorps tax breaks, they know that they will recoup those taxes elsewhere. A shallow-minded person like you wouldn’t think that far.
Before you argue just to sound smart without thinking critically, Switzerland has over fifty billion-dollar companies (by market cap) and a population of just 8.74 million people. They have among the highest standards of living, highest GDP per capita, and highest life expectancy in the world. There is a very strong correlation between megacorps and economic benefits to a country including its tax base. You’d have to be a total moron to ignore that obvious correlation. The probability of a Swiss graduate working at a megacorp is much higher than that of a Kenyan.
Did you know that megacorps generate a substantial portion of their profits and revenues outside their home country?? Apple generated 67% of its 2021 revenue outside the U.S in Q2 of 2021. That is another reason they pay lower corporate tax rates. If you pay taxes in Kenya but generate profits from Tanzania, I would give you a better tax rate because you are bringing money into the country.
Actually there are much better examples to show in Africa. E.g. The Sicomines in DRC. Chinese owned companies have properly fleeced Congo and repatriated a lot of cobalt and rare earth minerals to China enabling it to stay over US in the battle for the future of EV.
Congo produces over 70% of the world’s cobalt which is processed in China. American automakers like Ford, General Motors and Tesla buy cobalt battery components from suppliers that depend in part on Chinese-owned mines in Congo.
Even Kenya has such a deal with Base Titanium in Kwale
Over 70% of employees in Switzerland work in SMEs so clearly the megacorps are not responsible for the high standards of living there .
We see this replicated in many OECD countries where SMEs employ the bulk of the workforce .
Wacha ujinga kijana