Africa-Press – Kenya. Former Kiambu Governor William Kabogo has expressed concern that the 15 per cent Capital Gains Tax which became effective this year will discourage investment in the country.
The CGT is a tax that is levied on the transfer of property acquired on or before January 2015. It is declared and paid by the transferor of the property after excluding initial costs.
“It’s discouraging investment, growth and wealth creation. From 5% to 15% too much. Not to mention other taxes,” Kabogo said.
The Finance Act of 2022 amended Income Tax Act (ITA) by increasing the rate of capital gains tax (CGT) from 5 per cent to 15 per cent. The Act provided that the increase would take effect from January 1, 2023.
The former county boss aired his views on the increase in response to remarks by lawyer Nelson Havi on the alleged doubling of land rates in by the Nairobi County Government.
The lawyer was reacting to an investor who had sought his indulgence through a local newspaper to move to court and stop the doubling of the land rates.
“Rajesh Gohil speaking on behalf of residents of Nairobi City County requests that Nelson Havi Mtu Kazi Mahakamani (MKM) should go to Court on doubled land rates. Is that a majority view? Havi asked.
Rajesh had expressed his concerns in a newspaper that he went to pay for land rates but was slapped with new charges, double the amount. “They ask for 2022 receipts and issue you with the 2023 invoice after doubling the amount,” Rajesh said. The paper said, “of all the lawyers he knows, Rajesh is convinced that Nelson Havi can help to stop this gross injustice to property owners”.
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