@BusinessDaily

Budget 2018 implications: What to expect

6 days ago, 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

6 days ago, 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, 11:35
@StandardMedia - By: Cyrus Ombati
More than half of alcohol consumed in Kenya is illicit, says alliance

Up to 60 per cent of alcohol in Kenya is illicit and dangerous, more than double previous estimates by the World Health Organisation. ...

Category: business news
1 hour ago
@BusinessDaily - By: The Citizen
TZ seizes fish at MPs' canteen, minister apologises

A ministry official had on Monday used a ruler to measure the length of processed tilapia on a plate before impounding the two kilos of fish ...

Category: business lifestyle news
3 hours ago, 10:20
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Hackers steal $30m from top Seoul bitcoin exchange

SEOUL, South Korea, Jun 20 - Hackers stole more than $30 million worth of cryptocurrencies from South Korea's top bitcoin exchange, sending the unit's pric Kenya breaking news | Kenya news today | ...

Category: business finance
7 hours ago, 06:49
@BusinessDaily - By: Abiud Ochieng
Kenya lawyer rules out analysing Anglo Leasing data

The lawyer, through mutual legal assistance, got documents from the Swiss government ...

Category: business news opinion economy
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@CapitalFMNews - By: Kennedy Kangethe
Jubilee Insurance taps into microinsurance with premiums low as Sh20

NAIROBI, Kenya, Jun 20 - Jubilee Insurance on Wednesday launched microinsurance product targeting low-income earners in partnership with Bluewave Microfina Kenya breaking news | Kenya news today | ...

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CAK, Procurement Authority sign pact to promote fair procurement in Kenya

NAIROBI, Kenya, Jun 20 - The Competition Authority of Kenya (CAK) and the Public Procurement Regulatory Authority (PPRA) have on Wednesday signed a Memoran Kenya breaking news | Kenya news today | ...

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