@BusinessDaily

Budget 2018 implications: What to expect

3 months ago, 14 June 11:34

By: Edwin Okoth

As Treasury secretary Henry Rotich presents the budget speech today, some of the proposals for financing the spending plan are expected to hit ordinary consumers

Here are are some of the specific implications.

Construction materials – More expensive

To encourage construction of more housing, Rotich is expected to make taxable supplies imported or purchased for exclusive use in the construction of a minimum of 5,000 housing units by a licensed SEZ entity VAT exempt.

The move expected to make housing affordable will however mean that construction materials suppliers will not be able to claim input tax credits a move that may result into an increase in the cost of such materials.

Safety boots for firefighters, and protective clothes used in hospitals and Clinics - more expensive

Suppliers will pass down their irrecoverable VAT to consumers, a move that may make healthcare more expensive.

Fishing equipment to be more expensive

The move may affect the blue economy as nets, fish processors and other accessories will be more expensive.

Medicine - May be more expensive

Some medications and approved inputs or raw materials (either produced locally or imported) supplied to pharmaceutical manufacturers in Kenya for manufacturing medications have also been shifted from zero rating to VAT exempt regime. This is likely to push further prices of the affected medications.

Ambulances and other emergency relief equipment will also be more expensive under a similar tax regime shift.

Maize flour

To be more expensive after a reversal of the zero rating made last year.

To be more expensive, Rotich had zero rated wheat flour last year but that is set to change

Pesticides

More expensive since Agricultural pest control products will no longer be zero rated but VAT exempt instead

Air Travel

It may also be more expensive to check in travel bags with treasury expected to shift imported passenger baggage including unaccompanied baggage to VAT exempt from the current zero rating.


Read More


Category: business news markets corporate economy opinion

Suggested

Now
@BusinessDaily - By: Abiud Ochieng
Jirongo stays in cells on failure to raise bail

Former Lugari MP Cyrus Jirongo will remain in police custody until Thursday after he failed to raise Sh5 million cash bail to secure his freedom. ...

Category: business news economy opinion markets corporate
12 hours ago, 09:18
@TheEastAfrican - By: Daily Nation
Kenya to cut budget to $29 billion

Devolution, Treasury, ICT and Infrastructure ministries are among the biggest losers. ...

Category: topnews news business
7 hours ago, 14:20
@AfricaNews - By: Michael Ike Dibie
Libya sue JPMorgan over $6M bribe allegation | Africanews

Libyan Investment Authority (LIA) has sued JPMorgan Chase & Co. in London. ...

Category: africa africa_business business news topnews
10 hours ago, 11:09
@TheEastAfrican - By: Business Daily
Kenya loses out to Rwanda on conference hosting

Kenya hosted 17 global conferences last year compared to 21 held by Rwanda. ...

Category: business news
10 hours ago, 11:15
@BusinessDaily - By: The New York Time ...
For elderly women with breast cancer, surgery may not be the

Schonberg said that patients’ decisions — about screenings and treatments — have proved stubbornly resistant to change. ...

Category: business markets news corporate economy opinion
10 hours ago, 10:24
@CapitalFMNews - By: Agence France Pres ...
Hotspots, not trouble spots: Africa seeks tourism boom

Cape Town, South Africa, Sept 19 - Africa draws just five percent of the world's tourists despite boasting attractions ranging from the Pyramids and Kenya breaking news | Kenya news today | ...

Category: business

@BusinessDaily

Budget 2018 implications: What to expect

3 months ago, 14 June 11:34

By: Edwin Okoth

As Treasury secretary Henry Rotich presents the budget speech today, some of the proposals for financing the spending plan are expected to hit ordinary consumers

Here are are some of the specific implications.

Construction materials – More expensive

To encourage construction of more housing, Rotich is expected to make taxable supplies imported or purchased for exclusive use in the construction of a minimum of 5,000 housing units by a licensed SEZ entity VAT exempt.

The move expected to make housing affordable will however mean that construction materials suppliers will not be able to claim input tax credits a move that may result into an increase in the cost of such materials.

Safety boots for firefighters, and protective clothes used in hospitals and Clinics - more expensive

Suppliers will pass down their irrecoverable VAT to consumers, a move that may make healthcare more expensive.

Fishing equipment to be more expensive

The move may affect the blue economy as nets, fish processors and other accessories will be more expensive.

Medicine - May be more expensive

Some medications and approved inputs or raw materials (either produced locally or imported) supplied to pharmaceutical manufacturers in Kenya for manufacturing medications have also been shifted from zero rating to VAT exempt regime. This is likely to push further prices of the affected medications.

Ambulances and other emergency relief equipment will also be more expensive under a similar tax regime shift.

Maize flour

To be more expensive after a reversal of the zero rating made last year.

To be more expensive, Rotich had zero rated wheat flour last year but that is set to change

Pesticides

More expensive since Agricultural pest control products will no longer be zero rated but VAT exempt instead

Air Travel

It may also be more expensive to check in travel bags with treasury expected to shift imported passenger baggage including unaccompanied baggage to VAT exempt from the current zero rating.


Read More

Category: business news markets corporate economy opinion

Suggested

Now
@BusinessDaily - By: Abiud Ochieng
Jirongo stays in cells on failure to raise bail

Former Lugari MP Cyrus Jirongo will remain in police custody until Thursday after he failed to raise Sh5 million cash bail to secure his freedom. ...

Category: business news economy opinion markets corporate
12 hours ago, 09:18
@TheEastAfrican - By: Daily Nation
Kenya to cut budget to $29 billion

Devolution, Treasury, ICT and Infrastructure ministries are among the biggest losers. ...

Category: topnews news business
7 hours ago, 14:20
@AfricaNews - By: Michael Ike Dibie
Libya sue JPMorgan over $6M bribe allegation | Africanews

Libyan Investment Authority (LIA) has sued JPMorgan Chase & Co. in London. ...

Category: africa africa_business business news topnews
10 hours ago, 11:09
@TheEastAfrican - By: Business Daily
Kenya loses out to Rwanda on conference hosting

Kenya hosted 17 global conferences last year compared to 21 held by Rwanda. ...

Category: business news
10 hours ago, 11:15
@BusinessDaily - By: The New York Time ...
For elderly women with breast cancer, surgery may not be the

Schonberg said that patients’ decisions — about screenings and treatments — have proved stubbornly resistant to change. ...

Category: business markets news corporate economy opinion
10 hours ago, 10:24
@CapitalFMNews - By: Agence France Pres ...
Hotspots, not trouble spots: Africa seeks tourism boom

Cape Town, South Africa, Sept 19 - Africa draws just five percent of the world's tourists despite boasting attractions ranging from the Pyramids and Kenya breaking news | Kenya news today | ...

Category: business
Our App