01-07-2019 by Freddie del Curatolo
The tax increases decided by the Kenyan Treasury for the current financial year will be effective from today, July 1, 2019.
All of them, except for alcohol and spirits, which, following protests by the various categories involved, from importers to distributors and retailers, has been postponed for three months and will come into force on October 1. This will be a significant increase, but less than expected, because even if the rate is raised, a fixed tax of 136 shillings will be cancelled. Thus a bottle of whisky can cost up to 182 shillings more, a wine of average cost even 20 shillings.
From today, however, the other vices increase: cigarettes (from 8 to 60 shillings for a pack) and online betting (by 10 percent). On the latter, in addition to the companies, players will also be penalized, to try to limit the dependence that in the country is equating to that of Western Nations, with the aggravating factor of going to hit even citizens whose incomes are just above the threshold of survival. In fact, a ten per cent excise duty will be introduced, but this requires a bill that probably will not be approved before January 1, 2020.
Other changes that will affect certain categories concern the purchase and sale of used cars and deeds of houses, whose tax will increase from 5 to 12.5%, as well as the digital economy and e-commerce, the transport of goods (excluding air transport services), catering offered outside hotel services, marketing and advertising services.
The most important is the import duty on raw wood, which has been completely eliminated since the previous 10%, also in order to try to safeguard its natural and forest heritage.
New taxes and mandatory rules for small public transport in Kenya.
It will be the most important Chinese connectivity company to give fast internet through fiber optics to Kenya.
The agreement was initialled by Huawei and the Kenyan Government yesterday in Nairobi.
Thirteen major hotel companies will open in Kenya over the next five years.
According to an "Outlook Hotel" report, published by the PwC consulting agency, by 2021 the country, and most of all Nairobi, will have 2400 new rooms.
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