Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694841271643.pdf (Kenya)
P.4R LtaME NT OF KEN LI BR YA ARY REPUBLIG OF KENYA FINANGIAL STATEMENT for the Fiscal Year 2OOAI2OO9 ({st July - 30th Junel PART II TAXATION PROPOSALS This part of the Financial Statement summarises the proposed tax and other revenue measures included in the Finance Bill, 2008.

Not all the individual items are specified therefore, reference should be made to the Finance Bill and related Subsidiary Legislation for full details.
The Proposed revenue measures are as follows 1. ln line with international best practice and in recognition of the increased cost of air travel, the supply of international air travel is zero-rated to make our national carrier competitive.

2.

As a result of high international oil prices and rising cost of transport, which hurts wananchi, motorcycles of cc rating of up to 250 are zero-rated to encourage their wide use to reduce cost of transport and create employment in rural areas.

3.
3.

To accelerale recovery of the tourism industry by boosting hotel occupancy, import duty on all gymnasium equipment for use in the hotel industry will be removed.

4.

To further reduce the cost of construction and infraskucture development in order to accelerate grovvth in our country, import duty on hot rolled sections will be reduced from 10 percent to 0 percent.
5. ln order lo encourage groMh of our industries so as to create job oppo(unities for the youth and reduce cost of local goods, import duty on easy opening ends for cans used forfood packaging will be reduced from 25% to 10%.

6.

To promote the growth of our building industry by increasing use of locally manufactured goods, duty rate of 10% will be imposed on: (i) Sodium Sulphate; (ii) Aluminium Sulphate; and (iiii) epoxide resin.

7.
7.

To further consolidate the growth of our construction industry and to accelerate the ongoing infrastructure development, import duty on cement will be reduced from 40% to 250/o to make this product available to the users.

1 8.

Import duty will be removed on telecommunication equipment to encourage investment in modern telecommunicalion equipment, improve efficiency in our telecommunication network and reduce the cost of telecommunication in the country.
9. printers, which are specifically used together with computers will be removed.

ln order to further promote the development of the ICT industry, duty on all 10.

To promote environmental conservation and improve cleanliness in our cities and towns, in line with Vision 2030, duty on trucks specially designed for garbage collection will be removed.

11 .
11 .

To mitigate against the adverse effects of high food prices and make some basic food affordable lo consumerc, bread and rice will be zero-rated under VAT 12. ln order to enabte millers to import wheat grain to supplement local production, import duty payable on wheat will be reduced from 3570 to 10% or USD.50 per tonne whichever is higher for a period of one year.
13. ln order to address challenges associated with imported cigarettes and to move the cunent price-based practice to the characteristics-based practice, a hybrid of Retail Selling Pric+based and product characteristics-based excise regime for cigarettes will be introduced.

Excise duty applicable on cigarettes categories A, B, C and D will be increased to KShs.700; KShs.1,200; KShsl,500 and KShs.2,500 per mille, respectively.

14.
14.

To harmonize excise taxation in beers and enhance equity in the tax system, excise duty on malt beer will be increased by KShs4 per litre to move them in line with stout.

ln addition, as a first step toward harmonizing beer taxes, excise duty on non malt beer will be increased from KShs.26 per litre to KShs.36 per litre.

15.
15.

To ensure equity and also to encourage low income Kenyans to take advantage of the NHC scheme, I propose to provide for relief of interest on tenant purchase provided by NHC up to a maximum of Kshs.150,000 per annum.

KShs.

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