Vehicle registration and transfer now real time with new e-system

[gout]

• Tweet

Way to go ...technology..technology
http://www.businessdailyafrica.com/Vehicle-registration-and-transfer-now-real-time/-/539546/3240568/-/14hwjqnz/-/index.html

Also some statistical pointers on auto industry

Kenya sold about 20, 000 new cars last year, 134, 643 motorcycles and about 87, 761 second hand vehicles.

[RV Pundit]

87K used car was big drop from the usual thanks to idiotic tax that has been revised in the budget.

Way to go ...technology..technology
http://www.businessdailyafrica.com/Vehicle-registration-and-transfer-now-real-time/-/539546/3240568/-/14hwjqnz/-/index.html

Also some statistical pointers on auto industry

Kenya sold about 20, 000 new cars last year, 134, 643 motorcycles and about 87, 761 second hand vehicles.

[gout]

Another tax miss could be the M-Pesa records maneuver by KRA. As much as there is need to come up with ways to tax the informal sector there is need to assess the intended and unintended consequences. I am sure Lipa na Mpesa solution is now getting a hit.

[RV Pundit]

I didn't also understand how KRA will know the tax cheats from M-pesa records. I guess they will check m-pesa transaction for SMES? . KRA should focus on easy to collect tax. It easier to raise a lot of money from taxing every m-pesa transaction 3 bob...than trying to chase people around.

Another tax miss could be the M-Pesa records maneuver by KRA. As much as there is need to come up with ways to tax the informal sector there is need to assess the intended and unintended consequences. I am sure Lipa na Mpesa solution is now getting a hit.

[Georgesoros]

Ever though of reducing govt?
This govt is too big, consuming too much money.
Taxing money I send to my struggling parents is hideous. At some point restructuring govt is the only way out.

I didn't also understand how KRA will know the tax cheats from M-pesa records. I guess they will check m-pesa transaction for SMES? . KRA should focus on easy to collect tax. It easier to raise a lot of money from taxing every m-pesa transaction 3 bob...than trying to chase people around.

Another tax miss could be the M-Pesa records maneuver by KRA. As much as there is need to come up with ways to tax the informal sector there is need to assess the intended and unintended consequences. I am sure Lipa na Mpesa solution is now getting a hit.

[RV Pundit]

That I think works only for developed world...where gov has basically nailed the basics. We need to raise more. We are doing I think 18.5% tac/gdp..which for me is very little..South Africa collects maybe 25%...most of Europe collect upto 50% of their GDP.

Ever though of reducing govt?
This govt is too big, consuming too much money.
Taxing money I send to my struggling parents is hideous. At some point restructuring govt is the only way out.

[hk]

KRA should take a lesson from the new effective simplified landlord tax which is a flat rate 10% of rental income. Instead of the complex income tax currently in place which very few people pay, a flat rate of 10% would rope in alot of small traders and in doing so expand tax base. A bigger problem is how do we move our economy from informal to formal, what incentive do SMEs need to become formal.

[RV Pundit]

Precisely. right now KRA seem to depend on the 2M formal employee who contribute about 60% of all taxes via PAYE. The rest of 20M adult kenyans basically do not pay direct taxes. I would go for more transaction tax...take % of every bank or m-pesa value for every debit/credit..then it won't matter whether you're formal or informal...as long as you are moving money around...gov get their share. I would take 2% of every money moving here and there..and you'll be suprised how much money move around..m-pesa which 10% of all transaction..moves about 5 trillion shs now..cheques and rtgs..move billions...take 1-2%...of it....and you can easily collect trillions.

Formalizing transport sector seem to have failed. Retail sectors is doing great and gov need to roll out incentive to encourage more supermarkets...maybe tax breaks on their profit? Once everyone is buying from a super market then KRA can get serious VAT.

KRA should take a lesson from the new effective simplified landlord tax which is a flat rate 10% of rental income. Instead of the complex income t thax currently in place which very few people pay, a flat rate of 10% would rope in alot of small traders and in doing so expand tax base. A bigger problem is how do we move our economy from informal to formal, what incentive do SMEs need to become formal.