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    17% of Kenyan Billionaires looking to buy a house in 2021

    17% of Kenyan Billionaires looking to buy a house in 2021

    Uhuru: My desire is to provide jobs for the many unemployed youth

    Uhuru charms youths with Sh1.3 billion kitty

    Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

    Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

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    KPA Extends Date for Regional Maritime Awards Entries

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    Raila and Ruto to work together before 2022 Moses Kuria reveals

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    Opera launch its new Chat App to rival WhatsApp

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    Kenya still at risk of plastics despite UN Nod

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    Huawei and ICT Authority to provide Digital training to young Kenyans

    CBK reveals Kenyans abroad sent Ksh30.5B in remittances in January

    CBK reveals Kenyans abroad sent Ksh30.5B in remittances in January

  • Markets
    Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

    Faulu Bank to lend Ksh 3 billion to SMEs to boost growth

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    Opera launch its new Chat App to rival WhatsApp

    CBK reveals Kenyans abroad sent Ksh30.5B in remittances in January

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    17% of Kenyan Billionaires looking to buy a house in 2021

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Home KBF Opinion

Digital Services Tax a desperate move caused by bad governance

by Montui
January 19, 2021
in Opinion
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James Mburu, KRA Commissioner General

EDITOR’S OPINION

The Kenya Revenue Authority has today clarified what most Twitter, Instagram and Facebook infuencers had feared. That it is coming after their meagre earnings.

Digital Service Tax (DST), according to KRA, is chargeable to services offered in the digital marketplace and not goods.

“Social media influencers will be liable to pay digital service tax since their income is derived from or accrued from the provision of services through a digital marketplace or by providing digital advertising services in Kenya”, KRA posted on their social media pages.

Although not all social media influencers earn meagrely if you like; the DST should not have touched on this. But it did.

When a govt taxes the most trivial things in a society, it is an indication of desperation that stems from bad governance.

Recently, KRA data showed that it collected Sh166 billion against a target of Sh164 billion representing a 3.5 per cent growth over the same period in 2019.

Some explained this to be, one, better tax collection regimes, two, which is not so positive, a witch-hunt ongoing (as in the cases of KEROCHE and African Spirits Ltd) which have spilt into looking for everything to tax.

However, KRA Commissioner General Githii Mburu attributed the improved receipt to a rebounding economic environment following the significant hit occasioned by the COVID-19 pandemic.

β€œThe improved performance is attributed to the economic recovery following the relaxation of the stringent COVID-19 containment measures and enhanced compliance efforts by KRA in the month of December,” he said in a statement.

“For a nation trying to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle”, Winston Churchill.

The Kenya situation over the past 7 years has been to borrow, steal, plunder in endless overpriced projects. Now, according to Treasury Cabinet Secretary Ambassador Ukur Yatani, money has run out. In short the government is broke.

Yesterday, President Uhuru Kenyatta admitted rather carelessly that over Sh2 billion is wasted daily by his govt.

It is a ghastly sight where no one seems to be in control parastatal heads do whatever they like, civil servants loot without mercy and the president seems lame-duck to act.

The police service and the anti-corruption agency have been accused of being lenient or overwhelmed by the circus so whatever they do is to ‘get their cut’ and look the other way.

It is a failure in governance that has pushed KRA to try to tax even the diaspora, for through the Central Bank of Kenya (CBK), a survey is being floated to try to understand dispora remittances which have grown to over 340 billion in a pandemic year.

Whereas it looks good on paper, this is read as a ploy to try to rope the ones who fled Kenya for greener pastures because of the same bad governance, to start paying taxes. This is just a thought by some.

It should be resisted as some have.

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#DigitalServiceTax You will make every possible effort to succeed in Kenya, and the system/government will also make equal gigantic efforts to bring you down….

— πŸ„ΉπŸ„°πŸ…ˆπŸ„ΌπŸ„ΎπŸ„·_πŸ‡±Β πŸ‡¦Β πŸ‡ΎΒ πŸ‡²Β πŸ‡¦Β πŸ‡³ (@Jaymoh_Layman) January 18, 2021

You want to tax the little 527/- they get? Hamna hata huruma. Now everyone can see that bad governance doesn’t choose sides when the consequences strike everybody goes down!

Maybe it’s a wake up call for everyone to be actively involved in demanding for good governance going on.

— Kenya WestΒ© (@KinyanBoy) January 19, 2021

πŸ˜‚πŸ˜‚πŸ˜‚πŸ˜‚Did ya'll seee wanataka ku tax ata Online learning πŸ˜‚πŸ˜‚πŸ˜‚ Banana republic it isπŸ˜‚πŸ˜‚πŸ˜‚πŸ˜‚πŸ˜‚πŸ˜‚second last pointπŸ˜‚πŸ˜‚πŸ˜‚πŸ˜‚πŸ˜‚ @Ma3Route @NairobiGossips #DigitalServiceTax pic.twitter.com/lmLzjWDg3Q

— _your grandfather (@osugo5) January 18, 2021

KRA are chasing wind. 90% of influencer jobs I know are done based on Trust and it will be almost impossible to track down. For instance I know a big influencer, I give him money and tell him to get guys to do a certain ad or hashtag promo. This payment can’t be tracked.

— Cyprian, Is Nyakundi (@CisNyakundi) January 19, 2021

Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]

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