Cost of doing business about to go up

Mwalimu-G said:
You mean you notice even such?
Anyway, there are many reasons why one likes a post that are not necessarily endorsing the opinion. An example I may like an answer by @It's Me Scumbag for the wit or cutting sarcasm and not what he has to say about the issue at hand.
Click to expand...

Ducking the issue by introucing Scumbag. You should have said why exactly you liked the comment by Cotedivoire.
 
Okiya said:
Ducking the issue by introucing Scumbag. You should have said why exactly you liked the comment by Cotedivoire.
Click to expand...
Did you wake up from the wrong side of the bed? I appreciated the poster because he posted something relevant to the post. Juzi I criticised him for post in a nonsense about ejaculating in tea and parents pole ( nitakuletea link later today). My like should not be a bee in your bonnet.
 
Okiya said:
The new norm will be paying taxes immediately you import goods. The current way is paying taxes when you want to release your goods into the market
Click to expand...
So,jamaa wangu wa shipping akisema amewekelea mali kwa meli nafaa kukimbia KRA kulipa the relevant taxes
 
Afro said:
So,jamaa wangu wa shipping akisema amewekelea mali kwa meli nafaa kukimbia KRA kulipa the relevant taxes
Click to expand...

What will happen is the small businessmen will always be running out of stock. The big players will always be winning. People will run away from Mombasa port.
 
Mwalimu-G said:
Did you wake up from the wrong side of the bed? I appreciated the poster because he posted something relevant to the post. Juzi I criticised him for post in a nonsense about ejaculating in tea and parents pole ( nitakuletea link later today). My like should not be a bee in your bonnet.
Click to expand...

Likes = endorsements. It's as simple as that.
 
Usual whining BS. I don't know why Mwarimo is trying to be civil. Let me explain to those who don't know about bonded warehouses.

These are basically stores where imported goods are kept when their import duties are not yet paid. They are usually private facilities BUT until duty is paid KRA affixes a seal to ensure that the goods do not leak into the market. Ukilipa duty the seals are broken and you take away your goods.

Now, what do you think has been happening, this being Kenya? You are right! Traders connive with corrupt KRA officials to sneak the goods into the market, duty unpaid! They bypass the seals and dump cheap goods in the market making manufacturing in the country uncompetitive! Which is why you have all those Walalo traders in Eastleagh selling goods at the same price as Chinese shops in Guangzhou, unashindwa how now?

What KRA is trying to do is seal this leak by saying, if you import something, pay taxes at the port of entry. Umelipa manufacturer China upfront, ukalipa meli na insurance (CIF) upfront, mbona usilipe taxes upfront pia? Unataka kukaa na pesa ya umma kwa nini kama si eti unataka kuiiba?

Mimi hushangaa na upuzi kama huu wa Okiya kila wakati kuona any gavament initiative eti ni ujinga. HOW CAN YOU WHINE THAT THE GAVAMENT IS NOT SUPPORTING LOCAL MANUFACTURING WITH ONE SIDE OF THE MOUTH AND THEN CONDEMN MEASURES WHICH ARE SUPPOSED TO LIMIT LEAKAGE OF CHEAP IMPORTS INTO THE COUNTRY WITH THE OTHER?

Nimesema na nitasema; one of the greatest liablities to this country is our own people, not the gavament. Hawasaidiki hata na dawa, kazi ni ujuaji wa pesa nane.

(I know I'll pay for the honesty of ths comment for the foreseeable future)
 
Field Marshal said:
Usual whining BS. I don't know why Mwarimo is trying to be civil. Let me explain to those who don't know about bonded warehouses.

These are basically stores where imported goods are kept when their import duties are not yet paid. They are usually private facilities BUT until duty is paid KRA affixes a seal to ensure that the goods do not leak into the market. Ukilipa duty the seals are broken and you take away your goods.

Now, what do you think has been happening, this being Kenya? You are right! Traders connive with corrupt KRA officials to sneak the goods into the market, duty unpaid! They bypass the seals and dump cheap goods in the market making manufacturing in the country uncompetitive! Which is why you have all those Walalo traders in Eastleagh selling goods at the same price as Chinese shops in Guangzhou, unashindwa how now?

What KRA is trying to do is seal this leak by saying, if you import something, pay taxes at the port of entry. Umelipa manufacturer China upfront, ukalipa meli na insurance (CIF) upfront, mbona usilipe taxes upfront pia? Unataka kukaa na pesa ya umma kwa nini kama si eti unataka kuiiba?

Mimi hushangaa na upuzi kama huu wa Okiya kila wakati kuona any gavament initiative eti ni ujinga. HOW CAN YOU WHINE THAT THE GAVAMENT IS NOT SUPPORTING LOCAL MANUFACTURING WITH ONE SIDE OF THE MOUTH AND THEN CONDEMN MEASURES WHICH ARE SUPPOSED TO LIMIT LEAKAGE OF CHEAP IMPORTS INTO THE COUNTRY WITH THE OTHER?

Nimesema na nitasema; one of the greatest liablities to this country is our own people, not the gavament. Hawasaidiki hata na dawa, kazi ni ujuaji wa pesa nane.

(I know I'll pay for the honesty of ths comment for the foreseeable future)
Click to expand...

You have a tunnel vision if you think this move will support local manuacturing. Utashangaa..It will kill the small businesses kabisa. Kama hauna pesa as a businessman youre out.You think Kibaki unwise to allow the custom bonded warehouses to exist during his rule?? Continue accusing people of whining the same way you accused them when they said the economy wasn't doing good.

20200918_144120.jpg
 
Okiya said:
From October 12th, KRA has said it will be taxing consumer goods entering the country at the time of entry. Yani there will be no more custom bonded warehouses. Hapa only the businesses with deep pockets will survive.

Wakulima wadogo who import things like cars, clothing, office supplies, alcohol wataumia sana because custom bonded warehouses ensured they had constant supplies ready for their customers/market.
Click to expand...

When I import a car, I will pay tax whether or not it goes to a warehouse. Gari ikifika Mombasa naichukua as soo as its cleared because I dont want to pay for warehousing.

In Operations we have a concept called Just in Time (JIT) delivery. Why should importers with predictable demand need to stockpile? Why would anyone want to have high current assets?

The government is saying that it does not want to have a lot of "current taxes due". What is wrong with that? Who wants a large "current asset"
 
bigDog said:
Why should importers with predictable demand need to stockpile? Why would anyone want to have high current assets?
Click to expand...

Lets also ask you a question. Should local manufacturers e.g. EABL, BAT, etc also do away with their warehouses?
 
Okiya said:
Lets also ask you a question. Should local manufacturers e.g. EABL, BAT, etc also do away with their warehouses?
Click to expand...

Yes. Do away with warehousing and invest in infrastructure that allows you to supply goods to your consumers on time.

Do you understand the concept of current assets and how they affect the cashflow of a business? How do you like selling me some fish fillet on 90 day credit?
 
bigDog said:
Yes. Do away with warehousing and invest in infrastructure that allows you to supply goods to your consumers on time.

Do you understand the concept of current assets and how they affect the cashflow of a business? How do you like selling me some fish fillet on 90 day credit?
Click to expand...

I have 20+ years experience in auditing. Cashflow statements are things I look at on a daily basis. There is no credit being involved in this custom bonded warehouses.
 
bigDog said:
Yes. Do away with warehousing and invest in infrastructure that allows you to supply goods to your consumers on time.
Click to expand...

If the mighty Amazon and Walmatt have warehouses, you think our local EABL and BAT can do away with warehouses.
 
Okiya said:
I have 20+ years experience in auditing. Cashflow statements are things I look at on a daily basis. There is no credit being involved!!!!
Click to expand...

As usual, you are avoiding the question. What happens when you have bloated current assets? How much long term capital can you allow a business to hold in current assets?

I gave you an example that I will repeat, would you extend me 90 days credit for fish fillet that you buy on cash basis? Would i pay the same price as your cash customers ?

While answering these questions, can you also say what you understand by the concept of "Time value of Money"?
 
bigDog said:
As usual, you are avoiding the question. What happens when you have bloated current assets? How much long term capital can you allow a business to hold in current assets?

I gave you an example that I will repeat, would you extend me 90 days credit for fish fillet that you buy on cash basis? Would i pay the same price as your cash customers ?

While answering these questions, can you also say what you understand by the concept of "Time value of Money"?
Click to expand...

I am not avoiding the question. You asked whether I understand the concept of current assets to which I replied I have 20+ experience.

That example of fish doesn't make sense at all. Why are you introducing the angle of credit which is totally irrelevant??

What time value of money is being involved here???

Inakaa huelewi custom bonded warehouses how they work.
 
Okiya said:
I am not avoiding the question. You asked whether I understand the concept of current assets to which I replied I have 20+ experience.

That example of fish doesn't make sense at all. Why are you introducing the angle of credit which is totally irrelevant??

What time value of money is being involved here???

Inakaa huelewi custom bonded warehouses how they work.
Click to expand...

Isn't the government not offering credit by postponing your tax payment due date?
 
You must log in or register to reply here.
Back
Top