Saturday, May 18, 2024

Kenyans set to spend more on telephone and internet data services from 1st July 2021

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I write to bring to your attention the expected increase in excise duty on telephone and internet data services from 15% to 20%. This was not included in the Finance Bill and is a proposed amendment that is supposed to take effect from 1st July.

Considering that government services such as drivers’ licences, land transfers, parking and licence fees must be done online, this will affect data costs which will, in turn, affect internet access and penetration levels, innovation and employment – especially for the self-employed youths who rely on the internet for their income. The cost of airtime will also go up.

Will increasing the cost of what has now become an essential service really expand the tax base significantly? I have attached the Finance Bill 2021, a highlighted part of the proposed announcement and a link to the whole report from where I got the screenshot from. 

Samuel Musila
Samuel Musila
Passionate Software Developer and Tech content creator From Nairobi, Kenya

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