High Court Halts Ruto’s New Tax Plan
The Nairobi High Court has prohibited the Kenya Copyright Board (KECOBO) from disbursing funds collected through the Blank Tape Levy.
On Monday, September 11, the Kenyan government implemented a new tax known as the Blank Tape Levy.
The tax applies to the sale of virgin media and devices, including CDs, DVDs, USB drives, and smartphones. The tax amount varies according to the sort of media or device.
Wednesday, September 13th, the order was issued in response to a petition filed by individuals who claimed to be acting in the best interests of music producers and performers.
Petitioners argued that the Blank Tape Levy is unconstitutional and that the collected funds should not be distributed to the Performers Rights Society of Kenya (PRSK), the Music Copyright Society of Kenya (MCSK), and the Kenya Association of Music Producers (KAMP).
Petitioners argued that the levy violates their right to equitable compensation and that the funds should be used to promote the growth of the Kenyan music industry.
Before the hearing and determination of the petition, the court ordered KECOBO not to deposit the funds collected under the Blank Tape Levy into an interest-bearing account.
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Ababu Namwamba, the Sports Cabinet Secretary, stated to PoliticalPulseChat on Friday, August 25 that a Blank Tape Tax will be imposed on all digital and electronic devices with the capacity to record or produce internet content.
Ababu explained that the Blank Tape Levy will be used to compensate copyright holders for private duplication of their works. The petitioners, however, argue that the tax is unfair and will only benefit a limited number of copyright holders.
The purpose of the Blank Tape Tax is to increase the creation of digital content in the country. The Cabinet Secretary argued that the Blank Tape Tax is required to safeguard the rights of copyright holders and content creators in the nation.
“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.
It is currently unclear whether the Blank Tape Levy will be upheld, as the case is still unresolved in court. Nonetheless, the court’s decision is likely to have a substantial effect on the Kenyan music industry.
High Court Halts Ruto’s New Tax Plan
