In a bid to boost local traders and shield them from unfair competition from the foreign traders, the government has put in place measures to ensure that the local businesses are thriving.
Among the measures include exempting selected items from tax. Here are some of the things you wont be taxed on, if the budget is approved, as it is:
Currently, the law provides for exemption of duty for some select vehicles for the transport of tourists. To boost tourism and provide a platform to market our national brand worldwide, the exemption will now be expanded to include sightseeing buses and overland trucks imported by licensed tour operators.
Construction materials for grain storage facilities
This is on order to support safe storage of food and ensure sustained food security in the country. In this budget,
“Mr. Speaker, I propose to expand this exemption to include equipment used in the construction of the facilities in order to lower the cost of post-harvest storage. This will go a long way in supporting the food security pillar under “The Big Four” Plan.” Treasury CS Mr Henry Rotich said yesterday.
Animal feeds and their raw materials
While animal feeds are exempt from VAT, some of the raw materials used in their manufacture are taxable. This treatment has led to high prices of animal feeds. Thus, to make animal feeds affordable to farmers and attract more manufacturers to invest in the sector, Mr Rotich has proposed to exempt these raw materials from VAT.
Laptop parts used for laptop assembly
Information Communication Technology continues to play a big role in supporting the growth of our economy and thus making Kenya a regional ICT hub. To support the assembly of laptops under the primary schools program.
“I exempted parts imported or purchased locally for the assembly of these laptops in the country. In order to further promote the penetration of ICT in our economy, I propose to further exempt from VAT, parts imported or purchased locally for the assembly of computers. This will encourage local manufacturing, innovation and job creation.” Mr Rotich noted.