Ruto government announces new taxes on electronic devices targeting ‘youth’
3 min read
Government to roll out new tax on electronic devices; mobile phones, and cameras (Blank Tape Tax)
Government to roll out new tax on electronic devices; mobile phones, and cameras (Blank Tape Tax).
Sports Cabinet Secretary Ababu Namwamba has disclosed that a Blank Tape Tax will soon be levied on sales of electronic devices.
Speaking on Friday, August 25, Ababu noted that all digital and electronic devices with the capability of recording or producing internet material will be subject to the Blank Tape Tax.
All imported items would be subject to the tax, including foreign-made mobile phones, which have hitherto paid little tax in Kenya.
The purpose of the Blank Tape Tax is to promote the nation’s production of digital material. The Cabinet Secretary made the case that the Blank Tape Tax is essential to safeguarding the nation’s copyright owners’ and content creators’ legal rights.
“The Blank Tape Levy will be very significant and will make the collection of royalties go up ten-fold. This tax will be levied on any gadget that has recording capability.
“It will be imposed on any device including this camera which you are using or a mobile phone that is imported into the country from other countries,” Ababu explained.
The new tax, according to CS Namwamba, would have a big influence on people who buy online content, even though the country’s digital economy will grow as a result of the succeeding initiatives.
He added that the new fee is a component of President William Ruto’s strategy to develop the online economy for artists and other content creators, who he guaranteed will soon begin making more money from their creative labor.
Despite the plans being perceived as ambitious, Ruto was keen on ensuring the government successfully implemented it.
Kremlin responds to US intelligence on the killing of Wagner boss Yevgeny Prigozhin
How IEBC protected 2022 presidential results from ‘outside manipulation’- Chebukati
Canada announces the first-ever Express Entry invitations for skilled newcomers; Qualifications
KRA deploys system to monitor M-Pesa transactions to net tax cheats
Safaricom appoint former Uhuru CAS as Michael Joseph replacement
According to the CS, the revenue generated from the levy will be used to establish key facilities all over the country, including digital content creators’ academies, which will train and upskill creatives.
“We are revamping the exercise of royalties collection because that is where the problem is. We are implementing a digital system that will help us collect the royalties digitally.
“The government is also expanding the tax base. I have gazetted new tariffs for collection of royalties for our content creators,” the Sports Cabinet Secretary disclosed.
The money will also be used to promote Kenyan content creators both domestically and internationally. Such a move would help raise the Kenyan content profile and create new opportunities for creators to reach a wider audience.
CS Ababu further observed that if implemented effectively, the policies could help transform the Kenyan creative economy and make it a major economic growth and development driver.
Also read,
What caused the national power blackout that plunged country into darkness
Fireworks as Raila meets Gachagua a funeral
Raila terms graft claims against Oparanya is a political witch-hunt
Kenya’s position on BRICS as its economic rivals in the region joins the alliance
Follow us
