An Economy fueled by Taxes in a time of Politics

June 2017 is a very interesting month because it marks the Period when the politicians go full throttle on their Campaigns as they look to convince their fellow taxpayers to vote them in in the upcoming elections. While the government is persistent on showing their achievements in the last four years, the opposition will be counting on the rampant corruption scandals to sway the masses in their favor.   News on the amounts lost will hit the headline and keep the population talking more (Blame it on the negativity bias) and all these will soon fizzle out when the same politician accused of misappropriation dangles some goodies to the voters during campaigns  (Blame it on the Peculiar nature of Kenyans). Come the 8th of August, the voting decision will solely be upon the discretion of every citizen.  The Voters are likely going to vote according to how the politicians address their day to day life challenges, ethnic Background, others will participate in the polls in order to vote out a particular candidate and not caring much on the candidate that wins while others will vote based on the promises made by the politicians. Nevertheless, each and every Kenyan, through their taxes, plays a pivotal role in financing government projects and expenditures at both the national and county government level.

Taxes are both direct and indirect. While many think that they do not pay taxes because they are not in any payroll, they forget the consumption taxes in form of VAT charged at the point of purchase by vendors, excise taxes charged by banks at the point of cash withdrawal from their bank accounts, excise taxes charged for MPESA transactions and 10% excise on account maintenance fee at any bank.  For those in formal employment, Pay As You Earn is inevitable at the end of every month as the tax has to be deducted involuntarily at source. Companies too are subject to Caesars biting hand as they have to remit 30% of their profits to the government.  Therefore, all citizens have a hand in the running of government affairs as their taxes finance the infrastructure, finance the hospitals and even more they recently secured a debt for the construction of the Standard Gauge Railway line.  Indeed, you the tax payer are the most valued component of the government.

Taking pride in our sovereignty as a country, we are governed by laws and regulations. Taxes are not optional but mandated by the law. Therefore, each and every citizen of Kenya and resident of Kenya for a period of more than 6 months in a year is required by law to file their individual return detailing all incomes earned in the year and taxes paid before the 30th day of June of the year following the year the income was earned. Similarly, the 30th June deadline is applicable to companies whose year-end is December.

Return requirements

The evolution of technology has eased the process of filling returns. Taxpayers are required to file their returns on the online platform known as ITAX before the due date. Thus, employees will only require a P9 form showing the income earned in that specific year of income and the taxes deducted therefrom while companies and partnerships are required to have their audited accounts.

Because you are the financier of the economy, Let us finish this simple task before we head back to the game of politics. Come the 8th we will be electing our finance managers.

Contact us today, In case you are having trouble with the whole filling process,

All the Best

EABC Biznews.

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