Author Topic: Matters double taxation and meaning of mobile penetration  (Read 2982 times)

Offline audacityofhope

  • VIP
  • Enigma
  • *
  • Posts: 2149
  • Reputation: 5151
Matters double taxation and meaning of mobile penetration
« on: October 28, 2022, 03:45:15 PM »
Dr. Ndii and other state house advisers haven't begun work yet? Are they not advising Dr. Luto?
A whole PhD does not understand why mobile penetration in Kenya is 109% (source: CAK) 59million mobile connections as opposed to a population of slightly over 50m? (You can hold as many as 5 SIM card - some used by your children who don't have a National ID)
Besides when one uses mpesa or mshwari etc, they already are paying tax.... Will you tax Kenyans per simcard??

A govt does not balance its books by creating a deep hole in the pocket of taxpayers will only succeed in tipping a weak economy into recession.
Luto wants mwananchi to save yet he is hell bent on raising taxes
Lower rate of investment, lower disposable income & spending has a dampening effect on economic growth of a country.
If Luto keeps pushing KRA unreasonably, without fairness to taxpayers, millions of Kenyans will simply drop out of the tax bracket.

?s=20&t=PpV6McZ8kgd5FY3-VGTffg

Offline audacityofhope

  • VIP
  • Enigma
  • *
  • Posts: 2149
  • Reputation: 5151
Re: Matters double taxation and meaning of mobile penetration
« Reply #1 on: October 28, 2022, 03:48:15 PM »
?s=20&t=PpV6McZ8kgd5FY3-VGTffg

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38454
  • Reputation: 1074446
Re: Matters double taxation and meaning of mobile penetration
« Reply #2 on: October 28, 2022, 03:55:45 PM »
Why are they paying taxes without a PIN.
The solution is simple - KRA should create PIN for every kenya aged 18yrs - and have it associated with their M-pesa.
You cant open M-pesa without ID card.
So most of your nonsense dont make sense as always.

The start to making kenyans pay taxes is by widening the tax net.
Safaricom should demand for PIN before you open M-pesa. Your bank does the same.
Those that have opened should be mailed their new PIN.

Then Kra will monitor - those making huge M-pesa transactions - should be followed - and asked to file their proper returns.

Ruto is onto something.Most of our problems require common sense.

KRA and Mobile Provider should work on getting everyone a PIN.

Once you have a PIN - you are in the net - now it's will depend on parliament to determine who pay for or not which taxes.

By default everyone pay taxes.

So Kra should already have everyone and their tax contribution - just from M-pesa/air-time/bank transactions.

KRA should also make it easy to file their return - nobody should file nil return because they paid.

They should just submit the form - with any undeclared income or not - if they have no other income - the mpesa taxes paid become their tax returns

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38454
  • Reputation: 1074446
Re: Matters double taxation and meaning of mobile penetration
« Reply #3 on: October 28, 2022, 04:20:19 PM »
Ruto should hire Technology expert - who will turn KRA into huge data center - with huge customer care center - as big as Safaricom - the era of chasing taxpayers around manually should end.

https://www.standardmedia.co.ke/national/article/2001459254/avoid-extravagant-rebranding-and-cosmetic-changes-collect-money-ruto-to-kra

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38454
  • Reputation: 1074446
Re: Matters double taxation and meaning of mobile penetration
« Reply #4 on: October 28, 2022, 04:50:23 PM »

Offline Kadudu

  • VIP
  • Enigma
  • *
  • Posts: 4466
  • Reputation: 1411
Re: Matters double taxation and meaning of mobile penetration
« Reply #5 on: October 28, 2022, 04:52:56 PM »
So for every mobile transaction, mpesa is not alone in this field, I will have to expain to KRA the source of my cash?
Will not work. Go deposit 2K in your bank account and see if the bank will request for an explanation on the source of cash.
Government should concentrate first on landlords, who are mainly themselves. Start there before going for the real hosoras.

Offline audacityofhope

  • VIP
  • Enigma
  • *
  • Posts: 2149
  • Reputation: 5151
Re: Matters double taxation and meaning of mobile penetration
« Reply #6 on: October 28, 2022, 05:03:20 PM »
Why are they paying taxes without a PIN.
The solution is simple - KRA should create PIN for every kenya aged 18yrs - and have it associated with their M-pesa.
You cant open M-pesa without ID card.
So most of your nonsense dont make sense as always.

The start to making kenyans pay taxes is by widening the tax net.
Safaricom should demand for PIN before you open M-pesa. Your bank does the same.
Those that have opened should be mailed their new PIN.

Then Kra will monitor - those making huge M-pesa transactions - should be followed - and asked to file their proper returns.

Ruto is onto something.Most of our problems require common sense.

KRA and Mobile Provider should work on getting everyone a PIN.

Once you have a PIN - you are in the net - now it's will depend on parliament to determine who pay for or not which taxes.

By default everyone pay taxes.

So Kra should already have everyone and their tax contribution - just from M-pesa/air-time/bank transactions.

KRA should also make it easy to file their return - nobody should file nil return because they paid.

They should just submit the form - with any undeclared income or not - if they have no other income - the mpesa taxes paid become their tax returns
You go copying and pasting what is written by various authors on social media then your plagiarism coagulates into repetitive long winding inshas which you dump here. What you have labored above could have been collapsed into just one paragraph.

At this rate, more and more Kenyans will lend their ears to DP Rigati whose speeches are increasing more pragmatic and make more logical sense that those of Dr. Luto.

?s=20&t=PpV6McZ8kgd5FY3-VGTffg

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38454
  • Reputation: 1074446
Re: Matters double taxation and meaning of mobile penetration
« Reply #7 on: October 28, 2022, 05:18:04 PM »
Of course if you're transacting millions - you will have to explain.
The cost of chasing 2k is not worthy.
But we know right now only those formally employed pay taxes.
The rest dont pay - and we know many earn better than formally employed.
This where KRA need to go.

Step one - let everyone have KRA PIN - it cost them nothing. Let them file nil returns.

Step 2 - KRA will run algorithms - to check validity - and identify the big guys.
Property tax has to be increased - including idle rural land - this only way people can start to get serious.
Mzungu had hut tax in kenya in 1900.

The current land rates in kenya are a joke - something like 2000 shs per year - in Germany or US - it serious money.

way forward - for everything there has to be a rate - say 2 percent the value of property/nss/nhif

If you live in  Runda - that will mean every year you pay something like 100K - and if you live in Ruai - you pay 5k.

We would then be taxing the rich - not taxing products.

So for every mobile transaction, mpesa is not alone in this field, I will have to expain to KRA the source of my cash?
Will not work. Go deposit 2K in your bank account and see if the bank will request for an explanation on the source of cash.
Government should concentrate first on landlords, who are mainly themselves. Start there before going for the real hosoras.

Offline Kadudu

  • VIP
  • Enigma
  • *
  • Posts: 4466
  • Reputation: 1411
Re: Matters double taxation and meaning of mobile penetration
« Reply #8 on: October 28, 2022, 05:23:07 PM »
Why not just reintroduce head tax? Mzungu also had it in the 1900's. This way everyone will be forced to pay tax.

Of course if you're transacting millions - you will have to explain.
The cost of chasing 2k is not worthy.
But we know right now only those formally employed pay taxes.
The rest dont pay - and we know many earn better than formally employed.
This where KRA need to go.

Step one - let everyone have KRA PIN - it cost them nothing. Let them file nil returns.

Step 2 - KRA will run algorithms - to check validity - and identify the big guys.

Property tax has to be increased - including idle rural land - this only way people can start to get serious.

Mzungu had hut tax in kenya in 1900.

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38454
  • Reputation: 1074446
Re: Matters double taxation and meaning of mobile penetration
« Reply #9 on: October 28, 2022, 05:24:33 PM »
It starts by insisting everyone get a PIN.
Why not just reintroduce head tax? Mzungu also had it in the 1900's. This way everyone will be forced to pay tax.

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38454
  • Reputation: 1074446
Re: Matters double taxation and meaning of mobile penetration
« Reply #10 on: October 28, 2022, 05:25:25 PM »
Kumbe kumbe logic
You go copying and pasting what is written by various authors on social media then your plagiarism coagulates into repetitive long winding inshas which you dump here. What you have labored above could have been collapsed into just one paragraph.

At this rate, more and more Kenyans will lend their ears to DP Rigati whose speeches are increasing more pragmatic and make more logical sense that those of Dr. Luto.

?s=20&t=PpV6McZ8kgd5FY3-VGTffg

Offline Kadudu

  • VIP
  • Enigma
  • *
  • Posts: 4466
  • Reputation: 1411
Re: Matters double taxation and meaning of mobile penetration
« Reply #11 on: October 28, 2022, 05:52:29 PM »
Just because a company is paying 50M Ksh taxes a month does not mean it is right. Maybe it is supposed to pay 100M. KRA should go slow and use all kinds of negotiations before closing down firms. this should only be the last resort.
Politicians should be careful and not give firms a free hand to cheat on taxes just because the consequences will be minimal. Politicans work is to set policy for the tax collection.

Kumbe kumbe logic
You go copying and pasting what is written by various authors on social media then your plagiarism coagulates into repetitive long winding inshas which you dump here. What you have labored above could have been collapsed into just one paragraph.

At this rate, more and more Kenyans will lend their ears to DP Rigati whose speeches are increasing more pragmatic and make more logical sense that those of Dr. Luto.

?s=20&t=PpV6McZ8kgd5FY3-VGTffg

Offline audacityofhope

  • VIP
  • Enigma
  • *
  • Posts: 2149
  • Reputation: 5151
Re: Matters double taxation and meaning of mobile penetration
« Reply #12 on: October 28, 2022, 06:09:54 PM »
It starts by insisting everyone get a PIN.
Why not just reintroduce head tax? Mzungu also had it in the 1900's. This way everyone will be forced to pay tax.
?s=20&t=PpV6McZ8kgd5FY3-VGTffg

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38454
  • Reputation: 1074446
Re: Matters double taxation and meaning of mobile penetration
« Reply #13 on: October 28, 2022, 06:11:50 PM »
Ruto will invest in hustlers so they can pay taxes. That is how it works. Gov pay teaches 100B; gov take back 30B;
It starts by insisting everyone get a PIN.
Why not just reintroduce head tax? Mzungu also had it in the 1900's. This way everyone will be forced to pay tax.
?s=20&t=PpV6McZ8kgd5FY3-VGTffg

Offline Nowayhaha

  • VIP
  • Enigma
  • *
  • Posts: 7525
  • Reputation: 5000
Re: Matters double taxation and meaning of mobile penetration
« Reply #14 on: October 28, 2022, 06:30:28 PM »
its a standard in the modern world , that any ID card holder should have a mobile number . ID should also form basis of KRA Pin.
Huduma if had been in good faith could have addressed this.
Ruto using Mpesa number to address this although in good faith might result in apathy . Where people will go back to transacting in hard cash.
Best way is give all people Pin numbers using their ID and have it activated after mass social education . Many will come to voluntary
activate or make it a requirement to access any govt building or services one has to activate his or her pin.
Lastly Ruto should focus on creating jobs and improve economy you dont do this by focusing on taxing people. You need to attract investment , create industries , encourage inovation . Kenya needs to start manufacturing microchips colaborate with countries already doing it. Colaborate with big companies like apple , Huawei and Samsung . It is doable .
You tax people then you send the money to Pay debts in China , Thats Uhurus craziness . Then you borrow money and loot it . Kenyans stay hungry . Comeone we have learnr alot in past 5 years.

Offline Githunguri

  • Enigma
  • *
  • Posts: 3038
  • Reputation: 0
  • EVERY KENYAN SHOULD HAVE A GUN.
Re: Matters double taxation and meaning of mobile penetration
« Reply #15 on: October 28, 2022, 08:58:36 PM »
Safaricom makes 100BN revenues from Mpesa transactions...This is driven by substitution of Physical cash with digital money.Thats why Mpesa transaction have hit 29TN annually...GOVERMENT companies schools Ngos Individuals have shifted from Cash to mobile money.

1) Most Kenyans have two or three sim cards due to FULIZA  plus another for their children,home phone,domestic servants so that number of 59MN mobile phones or whatever is wrong.

2) Most Kenyan business nowadays have a mobile phone used to send petty cash.They transact from bank to Mpesa while most GOK and private corporation employees transact from.This is the largest volume of Mpesa transaction.

3) The  last group of Mpesa transactions is based on small businesses like shops gas retailers transport supermarkets etc etc.

In short Kenyans are already overtaxed people from VAT Fuel excise duty...Anything more will be overtaxation.

Ruto Tax policy will come back to haunt him.

He wants to tax landlords,Tax land owners,Tax Mobile money,Increased excise duty,All these are lost votes...To make matters worse He has been unable to sort out the food crises in our country as he had promised. What a tragedy.

Offline audacityofhope

  • VIP
  • Enigma
  • *
  • Posts: 2149
  • Reputation: 5151
Re: Matters double taxation and meaning of mobile penetration
« Reply #16 on: October 28, 2022, 10:00:20 PM »
It takes a long period but on the odd chance you come up with a thoughtful & sensible post. Bravo!
its a standard in the modern world , that any ID card holder should have a mobile number . ID should also form basis of KRA Pin.
Huduma if had been in good faith could have addressed this.
Ruto using Mpesa number to address this although in good faith might result in apathy . Where people will go back to transacting in hard cash.
Best way is give all people Pin numbers using their ID and have it activated after mass social education . Many will come to voluntary activate or make it a requirement to access any govt building or services one has to activate his or her pin.
Lastly Ruto should focus on creating jobs and improve economy you dont do this by focusing on taxing people. You need to attract investment , create industries , encourage inovation . Kenya needs to start manufacturing microchips colaborate with countries already doing it. Colaborate with big companies like apple , Huawei and Samsung . It is doable .
You tax people then you send the money to Pay debts in China , Thats Uhurus craziness . Then you borrow money and loot it . Kenyans stay hungry . Comeone we have learnr alot in past 5 years.


Offline audacityofhope

  • VIP
  • Enigma
  • *
  • Posts: 2149
  • Reputation: 5151
Re: Matters double taxation and meaning of mobile penetration
« Reply #17 on: October 28, 2022, 10:21:59 PM »
Safaricom makes 100BN revenues from Mpesa transactions...This is driven by substitution of Physical cash with digital money.Thats why Mpesa transaction have hit 29TN annually...GOVERMENT companies schools Ngos Individuals have shifted from Cash to mobile money.

1) Most Kenyans have two or three sim cards due to FULIZA  plus another for their children,home phone,domestic servants so that number of 59MN mobile phones or whatever is wrong.

2) Most Kenyan business nowadays have a mobile phone used to send petty cash.They transact from bank to Mpesa while most GOK and private corporation employees transact from.This is the largest volume of Mpesa transaction.

3) The  last group of Mpesa transactions is based on small businesses like shops gas retailers transport supermarkets etc etc.

In short Kenyans are already overtaxed people from VAT Fuel excise duty...Anything more will be overtaxation.

Ruto Tax policy will come back to haunt him.

He wants to tax landlords,Tax land owners,Tax Mobile money,Increased excise duty,All these are lost votes...To make matters worse He has been unable to sort out the food crises in our country as he had promised. What a tragedy.


?s=20&t=PpV6McZ8kgd5FY3-VGTffg

This man's strategies are focused towards balancing government books. Because these strategies are definitely not geared towards reducing the cost of living, he will need alot more than a year to get round to reducing the cost of unga.

Offline Georgesoros

  • Moderator
  • Enigma
  • *
  • Posts: 4685
  • Reputation: 7043
Re: Matters double taxation and meaning of mobile penetration
« Reply #18 on: October 29, 2022, 01:45:20 AM »
Safaricom makes 100BN revenues from Mpesa transactions...This is driven by substitution of Physical cash with digital money.Thats why Mpesa transaction have hit 29TN annually...GOVERMENT companies schools Ngos Individuals have shifted from Cash to mobile money.

1) Most Kenyans have two or three sim cards due to FULIZA  plus another for their children,home phone,domestic servants so that number of 59MN mobile phones or whatever is wrong.

2) Most Kenyan business nowadays have a mobile phone used to send petty cash.They transact from bank to Mpesa while most GOK and private corporation employees transact from.This is the largest volume of Mpesa transaction.

3) The  last group of Mpesa transactions is based on small businesses like shops gas retailers transport supermarkets etc etc.

In short Kenyans are already overtaxed people from VAT Fuel excise duty...Anything more will be overtaxation.

Ruto Tax policy will come back to haunt him.

He wants to tax landlords,Tax land owners,Tax Mobile money,Increased excise duty,All these are lost votes...To make matters worse He has been unable to sort out the food crises in our country as he had promised. What a tragedy.


Give him 90 days.

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38454
  • Reputation: 1074446
Re: Matters double taxation and meaning of mobile penetration
« Reply #19 on: October 29, 2022, 03:10:53 AM »
In Ruto I trust. He will take the hard difficult decisions. People will be very happy to pay when they see the benefits.

When food become very cheap to be thrown away to dogs - people will pay.

The man has brilliant advisors - is himself brilliant - and you can expect everything he said is measured, calcutated and SMART

Ruto is throwing serious figures - 4 times ability to increase the tax bases!

In excise duty alone - the scope is like 10 times -

Brilliant mind is a beauty