After sparing boda boda operators, infant flour and bread from new taxes, a parliamentary committee has proposed increases in other taxes that will raise the cost of airtime and internet data services.
Here’s the link: https://nation.africa/kenya/business/airtime-tax-among-new-hidden-taxes-3456570
Don’t click. It’s a premium article behind a paywall, probably padded with useless paragraphs.
From Standard: https://www.standardmedia.co.ke/business/financial-standard/article/2001416949/when-talk-isnt-cheap-love-for-your-phone-gifts-taxman-billions
Even as they removed VAT on these basic commodities, they cranked up excise duty on telephone and internet services to 20 per cent from the current 15 per cent.
With this, Kenya will join Gabon as one of the African countries with the highest taxes on airtime at 36 per cent, if you include the 16 per cent value-added tax (VAT) that is also levied on the item.
The Internet services apply even to fixed data subscription, although many Kenyans, about 40.9 million as of the end of June, according to the Communications Authority of Kenya, use mobile data for browsing. Most of this data is bought using airtime.
“Because they have taken huge loans and so they have to keep looking for anything to tax. The river takes the easiest course,” said Alex Gakuru, an activist for openness and transparency and consumer empowerment, adding that the taxman is attracted by the high penetration of mobile subscription, currently at over 90 per cent. Besides telephone and internet services, there was also increased excise duty on betting, vegetables, such as tomatoes and onions and confectionary sugar, in the amendments made to the Finance Bill, 2021.