Kutwa Tuesday – June 18

yes it’s Wednesday, but these relate to recent events

2008 Budget
– While the ICT sector was celebrating, a 25% tax on imported used computers was added on
– Wireless providers also pay a 10% tax, same as mobile companies (putting Telkom wireless on par with Safaricom and Celtel)
– Whistle blower on tax evasion may be entitled to 3% or 5% tax recovered by KRA. (but too late for David Munyakei)
– And from Tanzania; a brilliant idea that sounded dumb initially – at tax on loss making companies; It’s an alternative minimum tax for companies that report tax losses for three consecutive years – and will now amount to of 0.3% of their turnover. This is targeted at companies with high turnover that engage in tax avoidance could KRA adopt that later?

CFC Stanbic: In the CFC-Stanbic merger/takeover, shareholders voiced concerns that some CFC shareholders were getting paid and walking away from the company with cash. Now three of them – Gambit, Trogon, and Jani are voluntarily winding up

IPO refunds: The Central Bank is concerned about the slow pace of Safaricom refunds (statement (PDF))
– Yet there was there option in the initial prospectus for applicants to be refunded by M-pesa; which would have been ideal for thousands of minimum applicants [who are getting refunds of about 7,900 shillings or $127]
– The CBK statement mentions that you can send a message to confirm the status of your refund e.g. “CDS#ID#R” to 4009. (my message told me my cheque which I collected last week, was ready at the broker). What it doesn’t tell you is that the message costs 15 shillings or ~ 2 Safaricom shares at the going rate

8 thoughts on “Kutwa Tuesday – June 18

  1. branded

    hey Banks, Just wanted to let you know that the link you have put for business in Focus on your blog roll has some errors. you have included 2 http://http:// instead of one so it does no open. it sites error if you can, just remove one. Thanks

  2. Anonymous

    Hey Banks,
    Great blog, keep it up!!
    Quick qtn: Do you know if the text messaging service works on the Celtel network in Uganda?


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