What KRA needs to know about our small businesses
SEE ALSO :Best countries to do businessThere is resistance to the tax from the small businesses especially after suffering the bad economic realities of 2019 that saw a rise in inflation and thus thin profit margins. However, KRA is adamant on expanding the tax base and bridging budget deficits. Small business owners spoke to Hustle on what KRA needs to know about their enterprises before adding more taxes. Importers Importers and Small Traders Association (ISTA) Chairman Sammy Karanja, who also runs an electronics business in downtown Nairobi, doubts the tax would succeed lamenting that it was hastily done without proper engagement “as usual.” “The Finance Act 2019 was signed last year November without stakeholder involvement, the same Act failed in 2018 because the traders failed to disclose their incomes hence introduction of the presumptive tax which has totally flopped,” said Karanja.
SEE ALSO :Changes that marked the decadeHe said that the ever-present concern for small business was only survival. “In fact most informal business owners are people trying to earn money for basic needs. So now you want to tax a person who is trying to survive while giving multinationals tax incentives and tax breaks to billionaires?,” complained JM. Salon owner Mary, who runs a salon in one of the city estates, pointed out the thin profit margin she gets after incurring multiple expenses. “There are many expenses to factor in when you run a salon. I have to come up with the money to pay the person who washes clients’ hair and the towels. And then there are hair products, from oils and sprays to treatment options. I don’t spend less than Sh200 on each client’s head,” said Mary.
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