Finance Act 2022 to Increase Tax on Popular Products

A Mobile Phone Shop [Photo:Worldorgs.com]

Mobile phone and sim card prices will go up starting today, following the introduction of two new duties under the Finance Act 2022.

The Act imposes a 10 percent excise duty on the importation of cellular phones, which will be calculated based on the cost of the mobile phones ordered into the country, other taxes and levies.

This will see the cost of mobile phones rise by between Ksh700 and Ksh5,000.

A  Ksh50 excise duty will be charged on every imported ready-to-use SIM card.

The two duties were not part of the original Finance Bill 2022 submitted by Treasury Secretary Ukur Yatani, however were introduced during the debate by the House last month.

The Finance Act 2022 will also see imported sugar confectionery will be levied at Ksh40.37 per Kg, while a similar unit of imported white chocolate will be charged Ksh242.29.

The tariff on jewelry will increase from the current 10 percent to 15 percent.

Products containing nicotine or nicotine substitutes intended for inhalation without combustion will be taxed Ksh1,500.

Under the Act, borrowers of digital loans obtained via mobile banking will also pay more following a 20 percent duty on fees charged by digital lenders.

This will in turn push up interest rates and other fees paid by borrowers for digital loans.

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