Chelilimphil_

Finance and Tax Consultant

[Chelilimphil_ @Chelilim_]

@GichanaJap92507 @KRACorporate Hata wewe CPA unaspread misinformation?

Even consolidated cargo has had a budget ceiling, but was abused.
Somebody brings for example iPhones and claims they're infinix phones, hence pay way less tax, evading paying the rightful taxes. But hey, we don't want facts, let's trend!

[Chelilimphil_ @Chelilim_]

@sholard_mancity You just spreading your ignorance. That's a ceiling, you have a choice of unbundling the goods and pay tax based on the value of the goods. But you don't care about facts!

[Chelilimphil_ @Chelilim_]

I couldn't put it any better!

Problem with Kenyans we react and become emotional and political even without factual information.

[CPA Wachira Joseph @WashiraX]

KRA has raised the minimum customs value benchmark for general consolidated cargo from KSh 2.5 million to KSh 3.2 million.

That figure is not the tax you pay. It is the minimum assumed value of the goods in a consolidated 40 foot container under the simplified clearance arrangement.

But let's first understand how cargo consolidation works.

Tuseme there are 10 Kenyan business people buying electronics from China.

Shipping individually is expensive.

So they find a Kenyan clearing and forwarding agent with a warehouse in Guangzhou.
They tell their suppliers to deliver the goods to this warehouse.

The agent packs everything into one 40 foot container, ships it, and charges a shared fee that covers freight plus customs clearance.

That is cargo consolidation.

At Mombasa, the agent has two options to clear the goods:

1. Use the simplified arrangement. Customs treats the container as having a minimum goods value of KSh 3.2 million and assesses taxes on that basis (or on a higher declared value if the goods are actually worth more). The 3.2 million is a valuation floor, not a flat tax bill.

2. If the real value of the goods is lower and the taxes that would arise from the 3.2 million floor look too high, take the goods out of the single container declaration, declare each trader’s consignment separately, and pay tax on the actual customs value and classification of those goods.

So the agent has to chose a path that avoids higher taxes.

The majority of traders who import on their own use the second option. They pay tax based on the actual customs value of their goods. They do not pay extra customs taxes.

Secondly,

Customs taxes can affect how businesses compete.

If every businessman pays their actual amount of customs tax, even competition becomes fair.

You've probably seen two businesses selling almost identical products at completely different prices.

One is selling so cheaply, the competitor start wondering huyu mtunanatoa wapi hizi vitu zake? They wonder how that price even possible.

Sometimes the difference is in the cost of importing the goods including customs taxes.

If two businesses import the same product but one ends up with a substantially lower tax cost, they don't start the race from the same starting line.

The business carrying the higher tax bill has to sell at a higher price just to survive.

That's why customs valuation and taxation matter beyond KRA's revenue collection.

They affect real competition in the market.

Consolidators can still choose the second option. Break the shipment into individual declarations and pay the lower tax if the 3.2 million minimum value would overstate what is in the container.

[CPA Wachira Joseph @WashiraX]

KRA has raised the minimum customs value benchmark for general consolidated cargo from KSh 2.5 million to KSh 3.2 million.

That figure is not the tax you pay. It is the minimum assumed value of the goods in a consolidated 40 foot container under the simplified clearance arrangement.

But let's first understand how cargo consolidation works.

Tuseme there are 10 Kenyan business people buying electronics from China.

Shipping individually is expensive.

So they find a Kenyan clearing and forwarding agent with a warehouse in Guangzhou.
They tell their suppliers to deliver the goods to this warehouse.

The agent packs everything into one 40 foot container, ships it, and charges a shared fee that covers freight plus customs clearance.

That is cargo consolidation.

At Mombasa, the agent has two options to clear the goods:

1. Use the simplified arrangement. Customs treats the container as having a minimum goods value of KSh 3.2 million and assesses taxes on that basis (or on a higher declared value if the goods are actually worth more). The 3.2 million is a valuation floor, not a flat tax bill.

2. If the real value of the goods is lower and the taxes that would arise from the 3.2 million floor look too high, take the goods out of the single container declaration, declare each trader’s consignment separately, and pay tax on the actual customs value and classification of those goods.

So the agent has to chose a path that avoids higher taxes.

The majority of traders who import on their own use the second option. They pay tax based on the actual customs value of their goods. They do not pay extra customs taxes.

Secondly,

Customs taxes can affect how businesses compete.

If every businessman pays their actual amount of customs tax, even competition becomes fair.

You've probably seen two businesses selling almost identical products at completely different prices.

One is selling so cheaply, the competitor start wondering huyu mtunanatoa wapi hizi vitu zake? They wonder how that price even possible.

Sometimes the difference is in the cost of importing the goods including customs taxes.

If two businesses import the same product but one ends up with a substantially lower tax cost, they don't start the race from the same starting line.

The business carrying the higher tax bill has to sell at a higher price just to survive.

That's why customs valuation and taxation matter beyond KRA's revenue collection.

They affect real competition in the market.

Consolidators can still choose the second option. Break the shipment into individual declarations and pay the lower tax if the 3.2 million minimum value would overstate what is in the container.

[Chelilimphil_ @Chelilim_]

If @NdindiNyoro wanted to remain politically relevant, he should have launched his party before DCP, Linda Shosho wa Tusks, etc.... right now he is too late and he looks confused.
#SiasaKe

[Chelilimphil_ @Chelilim_]

@Its_Roddie And Money, several mirrions of money to Kachagwa!

[Chelilimphil_ @Chelilim_]

Kenyan journalists are either lazy or clever by half or both! Or they are just determined enablers of the oppression of Kenyans by bad, dishonest and deceitful politicians.

[NTV Kenya @ntvkenya]

Q: What is the thing that binds DCP? Is it just the removal of William Ruto? Once William Ruto leaves office, what happens?

Joe Nyutu: Rigathi Gachagua wants to bring meaningful change in Kenya: better healthcare, education, food security, affordable power, and more. We have many things that we want to do, not just removing Ruto from power.

#FixingTheNationNTV @fellariswambui @MariamBishar
@EricLatiff @NationFmKE

[Chelilimphil_ @Chelilim_]

@Dr_AustinOmondi Did you take a census in the police force to arrive at this flawed conclusion or you just post anything to get the last installment of Elon musk engagement payments?

[Chelilimphil_ @Chelilim_]

@Kimuzi_ We moved on from maize, that's a poverty crop, we plant for our own food. If the country wants to be food secure, the government should invest more in Galana gulalu!

[Chelilimphil_ @Chelilim_]

@the_sambu You have now started being merchant of misinformation, just listen to he entire speech!

[Chelilimphil_ @Chelilim_]

@wnyakera You didn't remember that when you were in charge of Kemsa when billions were lost? Surely, incompetence follows you, you run down KQ, KICC, Kemsa and now you think you have the audacity, you are no saint!

[Chelilimphil_ @Chelilim_]

@WabwobaCal1236 @Dr_AustinOmondi Bro, I love in Turbo constituency, my next door neighbours are luhyas from way before even 2007, we have intermarried child grew up together. Come buy land bro, nobody should bully you, or any Kenyan buying land anywhere.

[Chelilimphil_ @Chelilim_]

@bensonMuri16536 @WabwobaCal1236 @Dr_AustinOmondi Okay Mr right.

[Chelilimphil_ @Chelilim_]

@bensonMuri16536 @WabwobaCal1236 @Dr_AustinOmondi Nairobi is capital city, Mr entitled special Kenyan. Doesn't belong to you.

[Chelilimphil_ @Chelilim_]

@bensonMuri16536 @Dr_AustinOmondi Tell, how many of those have land, property or business in interior central? None. Why do you think that is? If you believe you love other people so much?

[Chelilimphil_ @Chelilim_]

@bensonMuri16536 @WabwobaCal1236 @Dr_AustinOmondi Since you know us better than we know ourselves, I will allow you to be right in your myopic thinking and POV.

[Chelilimphil_ @Chelilim_]

@bensonMuri16536 @Dr_AustinOmondi Okay, Mr Hosting.

[Chelilimphil_ @Chelilim_]

@WabwobaCal1236 @Dr_AustinOmondi You stayed 10 years, and bought land. Wewe sema Tu ulikuwa na personal problems which you had to sell land. The '07 tag is so lame and tired. Find something else. And btw, you are still welcomed to stay. Fyi, we have more than 4 wards occupied by our brother's from other tribes?

[Chelilimphil_ @Chelilim_]

@jusdreinjusdaun @Dr_AustinOmondi Naivasha and Kisumu is a joke to you?
Today, the NorthR is a host to millions of tribes from all walks of life. Can't say that for some regions.