@BusinessDaily

Budget 2018 implications: What to expect

5 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

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@BusinessDaily

Budget 2018 implications: What to expect

5 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

2 hours ago, 11:32
@StandardMedia - By: Afp
President John Pombe Magufuli orders army to buy all cashew nuts in Tanzania

Magufuli has ordered the army to buy up the entire country's crop of cashew nuts after private companies refused to pay price fixed by his government ...

Category: business news
1 hours ago, 12:23
@StandardMedia - By: Raphael Wanjala
Non-performing sugar factories to be closed in six months

Mwangi Kiunjuri has revealed that all state sugar millers that will not be financially stable in the next six months will be closed. ...

Category: business news
3 hours ago, 10:06
@StandardMedia - By: Reuters
US Senators alarmed if China gets control of Djibouti port

US senators expressed alarm on Tuesday about the military and political consequences if China gains control of a port terminal in Djibouti. ...

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5 hours ago, 08:30
@StandardMedia - By: Mirror
Drinking coffee lowers your risk of developing type 2 diabetes

Drinking three or four cups of coffee a day lowers the risk of diabetes by around 25 per cent, according to new research. ...

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Ruto hails UN support for Big Four agenda

Ruto has hailed the United Nations for its support to President Uhuru Kenyatta’s Big Four agenda. ...

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@StandardMedia - By: Kevine Omollo And ...
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National Cereals and Produce Board management in Kisumu has been put on the spot over negligence that has seen more than 15,000 tonnes of maize go bad ...

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