Cost of data bundles reduces as cooking gas, bodaboda hike

Treasury CS Ukur Yattani
Treasury CS Ukur Yattani.Photo/Pd

Kenyans running online businesses can now breath a sigh of relief after government reduced the tax on internet data.

While reading the 2021/2021 budget to members of Parliament, Treasury CS Ukur Yattani said the move is part of government’s plan to boost ecommerce.

“I propose to amend the Excise Duty Act so as to provide a rebate on the excise duty paid on internet data by a person who purchases the data in bulk for resale,” Yattani said.

To encourage Kenyans to use of green energy Yattani proposed to exempt from VAT equipment for generation of solar and wind energy.

This dealt a blow to those who use Liqufied Petroleum Gas for their daily use.

From July 1, expect the cost of motorcycles to rise since the excise duty on imported motorcycles will transition from a flat rate of Ksh.11,608.23 to a rate of 15 per cent raising the cost of units of boda-bodas.

On the other hand, importers of steel, shoes and leather products, wood and furniture face higher taxes after government imposed VAT on the products.

Gamblers on the other hand will have to part with their winning after Yattani reintroduce excise duty on betting at the rate of 20 percent of the amount wagered.

“The Finance Act 2020 removed excise duty on betting. The removal of this tax generated a lot of public debate considering that betting has become widespread in our society resulting
in negative social effects,” Yattani said.

Smokers and users of tobacco products will also have to dig deeper into their pockets to buy the products.

While stating that innovations in the tobacco industry have led to introduction of new products such as nicotine pouches, Yattani said the new products do not fall in the classification of tobacco products existing in the Excise Duty Act and are therefore currently not subject
to taxation.

“In this regard, I propose to introduce excise duty on products containing nicotine or nicotine substitutes at a specific rate of Ksh 5.0 per gram. This
rate of excise duty is equivalent to the duty applicable to similar products under the Act,” Yattani said.

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