Tax on landlords sets the stage for increase in rents

As the 2015 deadline for migration from analogue to digital television signals approaches, import duty on set top boxes – used to convert the signals – is to be removed.

The five per cent import duty on software has also been removed to make it cheaper and also attract foreign investors to the local ICT industry.

Read: EAC govts raise spending 20 pc, warn of tough economic spell ahead

Bee-keeping received a boost with the proposal to exempt from duty imported inputs.

Duty on food supplements will also be reduced to zero from 10 per cent to help address some nutritional problems.

He also imposed an import duty of 10 per cent on galvanised order to protect local iron and steel manufacturers who he said were facing unfair competition from cheap imports from the Far East.

As the 2015 deadline for migration from analogue to digital television signals approaches, import duty (25 per cent) on set top boxes – used to convert the signals – is to be removed.

Also read: Kenya to waive import duty on set-top boxes

The five per cent import duty on software has also been removed to make it cheaper and also attract foreign investors to the local ICT industry.

Bee-keeping received a boost with the proposal to exempt from duty imported inputs. Duty on food supplements will also be reduced to zero from 10 per cent to help address some nutritional problems.

The minister also proposed to exempt inputs used in the manufacture of medical diagnostic kits from any duty while reimbursing any duty to producers of food supplements for use by infants and persons living with Aids.

Churches, trusts, charitable groups and other non-governmental organisations will also be subjected to taxes under changes the Treasury proposes to improve administration of tax exemptions.

Traders in second-hand imported clothes will now only pay Sh1.1 million for a 20-foot container of imports instead of Sh1.9 million that is operational by the end of this month. He noted that higher tax had caused the businesspeople to reduce the imports significantly with some of them closing shop.

Read: EAC govts raise spending 20 pc, warn of tough economic spell ahead

girungu@ke.nationmedia.com