Uhuru gov is broke - Scared Governors yet to pay January salaries

[RV Pundit]

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What you need to know:
Workers tell of financial hardships, with dozens facing evictions.
In Taita Taveta County, about 3,000 workers are yet to receive their January and February pay.


Thousands of workers in at least eight counties have gone without salaries for up to five months, with the National Treasury being blamed for delays in disbursing funds to the devolved units.
https://nation.africa/kenya/news/workers-face-tough-times-as-pay-delays-hit-counties-3377808

[KenyanPlato]

They need to layoff workers. We have too many people in these positions doing a lot of nothing

[RV Pundit]

No treasury need to pay up. The counties have the autonomy through their service boards to decide on their staffing levels.

They need to layoff workers. We have too many people in these positions doing a lot of nothing

[Kadudu]

The biggest mistake in devolution was to make the national goverment the sole collector of VAT and other taxes. VAT should be collected where it is earned at the county level. Thereafter released to the national government according to an agreed division. The county governments have their right to the national purse and Treasury treats this like a privilege.
Of course UhuRuto gov. is broke. Not sure when it turned to be only Uhuru gov.

[RV Pundit]

VAT is difficult. PAYE is easy - and bigger PIE. VAT - factories in Nairobi - will remit to Nairobi. Maybe when our retail is formalized - can you collect VAT from super market or store - for now - it collected at factory level.

I say we go with PAYE first.

But BBI is not even talking about that.

The biggest mistake in devolution was to make the national goverment the sole collector of VAT and other taxes. VAT should be collected where it is earned at the county level. Thereafter released to the national government according to an agreed division. The county governments have their right to the national purse and Treasury treats this like a privilege.
Of course UhuRuto gov. is broke. Not sure when it turned to be only Uhuru gov.

[audacityofhope]

Anyone have an idea what this buffoon is trying to say?

VAT is assessed and collected every time there is a transaction (sale/purchase). When a receipt or ETR is provided it will show the 16% that ascribes to VAT. The seller charges VAT to the buyer, and the seller transmits this VAT to the government. In effect the supermarket is a collection agent for the government. What difference would it make to the collecting agent if that government was the county government as opposed to the National govt?

VAT is difficult. PAYE is easy - and bigger PIE. VAT - factories in Nairobi - will remit to Nairobi. Maybe when our retail is formalized - can you collect VAT from super market or store - for now - it collected at factory level.

I say we go with PAYE first.

But BBI is not even talking about that.

The biggest mistake in devolution was to make the national goverment the sole collector of VAT and other taxes. VAT should be collected where it is earned at the county level. Thereafter released to the national government according to an agreed division. The county governments have their right to the national purse and Treasury treats this like a privilege.
Of course UhuRuto gov. is broke. Not sure when it turned to be only Uhuru gov.

[audacityofhope]

....
But BBI is not even talking about that.

The biggest mistake in devolution was to make the national goverment the sole collector of VAT and other taxes. VAT should be collected where it is earned at the county level. Thereafter released to the national government according to an agreed division. The county governments have their right to the national purse and Treasury treats this like a privilege.
Of course UhuRuto gov. is broke. Not sure when it turned to be only Uhuru gov.

What a contrast and this forum isn't immune to the same either...

[gout]

This after the suppliers have gone under debt. Uhuru has messed up PFM totally with his silly pronouncements which are ussually ignored except where they are serving the corruption machinery.

NMS is swimming in billions just like NYS, KEMSA. Easy peasy. 

[RV Pundit]

It always very funny when BUFFON refer to me as buffon

How many supermarkets are there in Bungoma. Kheitas in Kanduyi and Bungoma town? How much VAT can Wangamati collect.

In formalized market - yet VAT is collected in supermarkets and such.

In Kenya - 60% plus of transaction still happens in your local duka - they cannot levy VAT. INFORMAL RETAIL ND WHOLESALING choo.com - is beyond your PAYGRADE.

So KRA basically pre-levy VAT - except when know it will be levied at supermarkets - but rest it's levied at factory level.

Anyone have an idea what this buffoon is trying to say?

VAT is assessed and collected every time there is a transaction (sale/purchase). When a receipt or ETR is provided it will show the 16% that ascribes to VAT. The seller charges VAT to the buyer, and the seller transmits this VAT to the government. In effect the supermarket is a collection agent for the government. What difference would it make to the collecting agent if that government was the county government as opposed to the National govt?

VAT is difficult. PAYE is easy - and bigger PIE. VAT - factories in Nairobi - will remit to Nairobi. Maybe when our retail is formalized - can you collect VAT from super market or store - for now - it collected at factory level.

I say we go with PAYE first.

But BBI is not even talking about that.

The biggest mistake in devolution was to make the national goverment the sole collector of VAT and other taxes. VAT should be collected where it is earned at the county level. Thereafter released to the national government according to an agreed division. The county governments have their right to the national purse and Treasury treats this like a privilege.
Of course UhuRuto gov. is broke. Not sure when it turned to be only Uhuru gov.

[Kadudu]

So in this case of hardly any supermarkets in Bungoma and just kiosks, KRA still knows what is sold in Bungoma and the VAT which should have been collected there is known. VAT should be divided between the national and county government at a decided formular. This way those always whining like in Kiambu that they are being short changed will get their rightful share.
Do not forget that even KPA will have to pay some of its remittances to the Mombasa county. That is real devolution and not this half baked system we currently have in Kenya.

It always very funny when BUFFON refer to me as buffon

How many supermarkets are there in Bungoma. Kheitas in Kanduyi and Bungoma town? How much VAT can Wangamati collect.

In formalized market - yet VAT is collected in supermarkets and such.

In Kenya - 60% plus of transaction still happens in your local duka - they cannot levy VAT. INFORMAL RETAIL ND WHOLESALING choo.com - is beyond your PAYGRADE.

So KRA basically pre-levy VAT - except when know it will be levied at supermarkets - but rest it's levied at factory level.

[RV Pundit]

How would KRA knows? A factory in Nairobi sells stuff to wholesalers and distributors - and then distributors sell to dukas - they don't use county boundaries.

VAT is hard. PAYE is easy because every employee knows their duty station county.

Real devolution indeed will include CRA - country revenue authority - but it has to be done slowly

So in this case of hardly any supermarkets in Bungoma and just kiosks, KRA still knows what is sold in Bungoma and the VAT which should have been collected there is known. VAT should be divided between the national and county government at a decided formular. This way those always whining like in Kiambu that they are being short changed will get their rightful share.
Do not forget that even KPA will have to pay some of its remittances to the Mombasa county. That is real devolution and not this half baked system we currently have in Kenya.

It always very funny when BUFFON refer to me as buffon

How many supermarkets are there in Bungoma. Kheitas in Kanduyi and Bungoma town? How much VAT can Wangamati collect.

In formalized market - yet VAT is collected in supermarkets and such.

In Kenya - 60% plus of transaction still happens in your local duka - they cannot levy VAT. INFORMAL RETAIL ND WHOLESALING choo.com - is beyond your PAYGRADE.

So KRA basically pre-levy VAT - except when know it will be levied at supermarkets - but rest it's levied at factory level.

[Kadudu]

PAYE, counties like Bungoma will loose big. Hardly any salary workers in such counties. My point is, national govt. should not behave as if only it is entitled to VAT, PAYE etc. Some of the cash earned in the counties should remain there. This will encourage counties that have a lot of business to continue developing and the others will try to catch up.

How would KRA knows? A factory in Nairobi sells stuff to wholesalers and distributors - and then distributors sell to dukas - they don't use county boundaries.

VAT is hard. PAYE is easy because every employee knows their duty station county.

Real devolution indeed will include CRA - country revenue authority - but it has to be done slowly

[Arcadian_Dreamer]

Goods and services tax would solve this issue.

[RV Pundit]

Biggest PAYE come from TSC - Bungoma has one largest teachers cadre. PAYE is every employee working in Bungoma. Teachers, Police, Nurse. As long as your duty station is Bungoma...then KRA can easily know the money came from Bungoma. VAT is difficult with informal retail and wholesaling. The choo.com escapee will find this hand to fathom. Forgive him.

PAYE, counties like Bungoma will loose big. Hardly any salary workers in such counties. My point is, national govt. should not behave as if only it is entitled to VAT, PAYE etc. Some of the cash earned in the counties should remain there. This will encourage counties that have a lot of business to continue developing and the others will try to catch up.

How would KRA knows? A factory in Nairobi sells stuff to wholesalers and distributors - and then distributors sell to dukas - they don't use county boundaries.

VAT is hard. PAYE is easy because every employee knows their duty station county.

Real devolution indeed will include CRA - country revenue authority - but it has to be done slowly