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Kenya: Indirect tax measures proposed in 2019 budget

Kenya: Indirect tax measures proposed in 2019 budget

The Finance Bill, 2019 and various legal notices containing the budget proposals were submitted to the parliament on 13 June 2019.


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The indirect tax measures included proposals to:

  • Expand the definition of supply of imported services to apply also to persons not registered for value added tax (VAT)
  • Expand the scope of VAT to include supplies made through the digital marketplace
  • Provide that the timing of the supply of imported goods would include the time the goods are removed from a special economic zone
  • Exempt from tax specialized equipment used for the development of solar and wind energy
  • Reduce the rate of the VAT withholding from 6% to 2%
  • Exempt from VAT “motherboards” and related components if made in Kenya
  • Exempt from VAT services and machinery related to plastic recycling
  • Increase the excise tax rate on alcoholic beverages and tobacco products

Read a June 2019 report [PDF 4.2 KB] prepared by the KPMG member firm in Kenya

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