Govt Introduces New Taxes On Phones and Recording Devices
The Kenya Copyright Board (KECOBO) has announced the implementation of a new tax on the recording and duplication of media. This includes, among others, smartphones, CDs, DVDs, and USB devices.
The 15th of September will mark the beginning of fee collection, with manufacturers and importers of blank media bearing the expense.
The tax will be levied at the point of entry for electronic devices, and it is anticipated that it will increase creatives’ royalties and reduce the revenue lost when their works are copied.
According to KECOBO, the fees will be nominal, which means they will be negligible and barely perceptible to consumers.
“This is to notify the general public of the commencement of the implementation of the Blank Tape Levy with effect from September 15, 2023, under sections 28(3)(6) and 30(6) of the Copyright Act and the second schedule part B of the Copyright Regulations 2020,” KECOBO’s notice read in parts.
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“Blank Tape Levy is collected on items that may be used to carry copyright-protected content for private copying payable at the point of entry into Kenya or the point of first manufacture locally,” the copyright board elaborated.
According to Ezekiel Mutua, the chief executive officer of the Music Copyright Society of Kenya (MCSK), the implementation of this levy will generate Ksh6 billion annually.
This is a significant increase from their current income of Ksh200 million.
In a previous interview with PoliticalPulseChat, sports CS Ababu Namwamba elaborated on the changes, stating that money would be used to establish critical facilities throughout the country, including digital content creators’ academies that 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,” Namwamba stated.
While this may be good news for creatives, fears of price increases for the affected commodities have increased, particularly given the high cost of living in the country.
As a result, it remains to be seen how much money will be taxed on the devices and how this will affect the prices of said devices in the country.
Govt Introduces New Taxes On Phones and Recording Devices
