Airlines warn Kenya to lose regional edge on new taxes

The VAT on financial services will hit telegraphic money transfer services.

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Kenya will lose its regional aviation competitiveness to its neighbours if the Treasury proposal to impose value-added tax (VAT) on imported aircraft and drones is approved by Parliament, aviation lobbyists have said.

The Association of Air Operators (KAAO) and the African Airlines Association (AFRAA) said the proposed imposition of 16 percent VAT will spell doom for the local aviation industry.

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