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PwC warns new Tax notice may cause confusion on effective date

The notice that seeks to adjust excise duty levied on various products was published on November 2, 2021, but is dated 15, October 2021 and does not clearly define its effective date.

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Finance consulting firm Pricewaterhouse Coopers (PwC) is warning of a possible confusion that could be caused by Legal Notice No. 217 issued by KRA Commissioner General (CG), Githii Mburu.

The notice that seeks to adjust excise duty levied on various products was published on November 2, 2021, but is dated 15, October 2021 and does not clearly define its effective date.

In a Tax Alert published by PwC’s tax consultants, they warn that “this is likely to create confusion as the effective date could be subject to varying interpretation, which is bound to present compliance challenges to businesses and disputes with the tax authority.”

Through the notice, the CG reviewed upwards the excise duty rates for specific products, excluding petroleum products, to take into account the rate of inflation for the financial year 2020/2021 which is averaged at 4.97%.

The inflationary adjustment was introduced to ensure that the duty does not lag as price levels increase due to inflation. This was as a result of the Excise Duty Act, 2015 (the Excise Act), introducing specific excise duty rates for most products except cosmetics, food supplements and motor vehicles.

The new rates published by the CG  are based on the inflationary adjustment formula which is prescribed in the Excise Act. It stipulates specific excise duty rates based on the average rate of monthly inflation of the preceding Government fiscal year.

Affected products include fruit and vegetable juices, bottled water, beer and ciders, powdered beer, wines and alcohol spirits. Others are cigarettes, cigars and tobacco products, electronic cigarettes and cartridges used in electronic cigarettes, and other manufactured tobacco substitutes.

The new rates will also apply to imported motorcycles except for motorcycle ambulances, imported sugar confectionery, and white chocolate.

However, a notable exception from Legal Notice No. 217 is an excise inflation adjustment on petroleum products. This follows a petition filed at the High Court in Nairobi seeking to block KRA from adjusting excise duty on petroleum products through a public notice issued on August 10, 2021.

The court issued conservatory orders on September 27, 2021, with respect to petroleum products, pending the hearing and determination of the matter.

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Kenyans dissatisfied with government fight against corruption, fear retaliation if they report

Only two in 10 Kenyans (18%) believe that ordinary people can report incidents of corruption to authorities without fear of retaliation or other negative consequences.

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Graphic representation of Corruption and Law. Photo/Courtesy

A majority of Kenyans say the level of corruption in the country has increased and the government is doing a poor job of fighting it, a new Afrobarometer analysis shows.

Findings from a national survey in late 2019 show that among Kenyans who had contact with selected public services during the preceding year, substantial proportions say they had to pay a bribe to obtain the services they needed.

The most frequent experience of paying a bribe was among citizens who sought assistance from the police. And only a small minority believe that people can report corruption to the authorities without fear of retaliation.

Corruption hit the headlines again recently when a report by the International Consortium of Investigative Journalists implicated high-profile figures around the world – including prominent personalities in Kenya – in using secret offshore accounts to accumulate wealth.

Almost two-thirds (64%) of Kenyans say the level of corruption in the country increased “somewhat” or “a lot” during the year preceding the survey, a 23-percentage-point increase compared to 2014.

Eight in 10 citizens (79%) of citizens say the government is doing a “fairly bad” or “very bad” job of fighting corruption, a 13-percentage-point increase compared to 2014.

Only two in 10 Kenyans (18%) believe that ordinary people can report incidents of corruption to authorities without fear of retaliation or other negative consequences.

The police are most widely perceived as corrupt: 68% of Kenyans say “most” or “all” police officials are corrupt. Substantial proportions of the population see widespread corruption by the president and officials in his office (33%), county assembly members (46%), and members of Parliament (47%).

Among respondents who had contact with key public services during the year preceding the survey, substantial proportions say they had to pay bribes to get police assistance (56%), avoid problems with the police (39%), or obtain identity documents (49%), medical care (24%), or public school services (18%).

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MP Lesuuda re-affirms commitment to development

Speaking after holding aa training on projects implementations with Project Management Committees of all schools, she noted that infrastructure is key towards transformation.

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Samburu West MP Naisula Lesuuda.PHOTO/Courtesy.

Samburu West MP Naisula Lesuuda has reiterated her commitment towards improving infrastructure.

Speaking after holding aa training on projects implementations with Project Management Committees of all schools, she noted that infrastructure is key towards transformation.

“We continue to work towards improving the infrastructure of our  learning institutions. We held a training on projects implementations with Project Management Committees of all schools that will be befitting from NGCDF 2021/2022” she said.

The Legislator revealed that out of the 59 schools, 31 have received cheques  adding that the office is waiting  for more funds to be disbursed.

She also held consultative meeting with top management of KMTC Nyahururu Campus, Samburu County Health Department led by the CEC and Architectural consultants to firm up on some of the queries that will enable hasten the process.

“This is a vision that we are all looking forward to seeing it come to fruition. It gave me so much joy to interact with students of St. John’s college who came to say hello and appreciate the work done so far” said Lesuuda.

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Equity Group CEO recognized among 100 meaningful business leaders globally

Dr. James Mwangi was selected under the financial services category, for championing initiatives that address the 17 SDGs and specifically focusing on alleviating poverty and inequality at the bottom of the socio-economic pyramid.

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Equity Group CEO Dr.James Mwangi.PHOTO/Courtesy.

Equity Group Managing Director and CEO, Dr. James Mwangi is among 100 global leaders selected by Ernst & Young’s Meaningful Business 100 (MB 100) 2021.

The 3rd edition hailed leaders for their role in tackling the world’s most pressing issues and for fostering the achievement of the UN Global Goals.

Dr. James Mwangi was selected under the financial services category, for championing initiatives that address the 17 SDGs and specifically focusing on alleviating poverty and inequality at the bottom of the socio-economic pyramid.

This has been realised through his vision and through his efforts to drive Equity’s business model which focuses on financial inclusion and for running a high volume and low margin corporate, with a purpose to transform lives, give dignity and expand opportunities for wealth creation aligned with a call to push for a purpose first economy in the six markets the Group operates in.

According to MB 100, its membership takes a people centered approach, placing the wellbeing of employees and those impacted by the business, at the forefront of the strategy.

Each leader must have either created positive, direct and intended impact aligned to one or more SDGs in the last 12 months or must have been the driving force behind the product, service or project that combines purpose and profit.

The 2021 nominees included corporate CEOs, entrepreneurs, sustainability leaders and impact investors, representing the best of what business, entrepreneurship and social innovation can be from 33 countries worldwide.

The recognition was curated by an expert panel of 21 judges and the winners were scored across five key areas: Impact, Leadership, Innovation, Durability and Scope.

The 2021 panel of judges included Nikhil Seth an assistant Secretary General at the UN, Stasia Mitchell, the Global Entrepreneurship Lead at audit firm EY and Paul Lindley the founder of Ella’s Kitchen among others.

Over the past few years, Kenyan corporates have increasingly become conscious of how their operations, consumption and production are impacting the environment and community.

This has seen not just Dr. Mwangi receive the recognition but another 4 Kenyans have also been selected from a pool of 500 nominations from 75 countries globally.

Last year Dr. Mwangi joined a league of 14 global CEOs with a proposed a roadmap to “build the economic system better” after the COVID-19 pandemic. He is also an honoree of the 2020 Oslo Business for Peace Award.

In 2012, Dr. James Mwangi won the Ernst & Young World Entrepreneur of the Year, becoming the first business leader from Sub Saharan Africa to win this prestigious award among others.

 

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