Are you a property owner? If yes, prepare for a deeper digging in your pockets to boost the revenue kitty. This is after the Treasury signalled tougher tax rules on property owners in a bid to collect more revenue.
According to Treasury secretary Henry Rotich, the government could rope in the taxman to help county administrations seal loopholes in tax collection for land and property. He made the remarks on the sidelines of a regional forum on fiscal policies organised by the International Monetary Fund (IMF) and the European Union in Nairobi.
Rotich pointed out that “The current property tax is not well designed; valuation rolls are outdated and the coverage is low. We are going to deal with the legal design first, then (see) how we can capacitate counties.” Should the suggestions be adapted, the Kenya Revenue Authority will work with Treasury on collections.
In April 2018, Lands secretary Farida Karoney advised the Senate Committee on Land, Environment and Natural Resources that the government had finalised taxation guidelines on idle land in efforts to boost agricultural production and enhance food security.
The implementation of the Idle Land Taxation Policy, if adopted by the National Assembly and Senate, would see owners of idle land face penalties. According to Karoney, her ministry will however offer incentives to encourage productive and sustainable use and disincentives for keeping idle land. Data from KRA availed in October 2018 shows that its ongoing crackdown on tax cheats will reduce the gap in efforts to fund 2.97 trillion shillings budget.
IMPROVE YOUR PROPERTY
Optiven Limited has been in the real estate sector for 20 years and during that time, the company has continued to transform the lives of it’s customers. The first step has been to empower them through offering state of the art products via provision of transformed plots.
Already, over 7,000 customers with homes and the gear is aimed at achieving at least 300,000 settled clients in their homes. Among those that have settled in their properties, some have gone ahead to ensure their investment does not lie idle. But as regards property tax, what can an investor do to ensure your investment in property does not lie idle. Here are two great recommendations from Optiven Limited.
Apart from giving the property a special identity, trees can also be a great way to improve the environment. Fruit trees are especially great for purposes of both beautification as well as provision of food. They also provide shade for plants on the property and enhance crop production.
This provides a great ambience for the property owner. Landscaping enables you to utilize spaces with new crops and herbs. For some the landscaping is an opportunity to be one with nature.
George Wachiuri is a Leading Entrepreneur, a Published Author, Philanthropist, Youth Empowerment Enthusiast, a Family man, an award winner of African Business Personality Award 2018 by Voice Achievers, Netherlands and CEO of Optiven Group
To invest with us contact us at