New Mobile & Camera Tax Introduced by Government
Ababu Namwamba, cabinet secretary for sports, disclosed that the government will shortly impose a Blank Tape Tax on the purchase of electronic devices.
Ababu revealed, in an exclusive interview with Political Pulse Chat on Friday, August 25, that the Blank Tape Tax will be imposed on all digital and electronic devices capable of recording or producing internet content.
The tax will be imposed on all imported devices, including foreign-made mobile phones, which have been exempt from taxation in Kenya for years.
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 increase royalty collection by a factor of ten. This tax will be imposed on all recording-capable devices.
“It will be imposed on any device imported into the country, such as this camera you are using or a mobile phone from another country,” Ababu explained.
According to CS Namwamba, the tax will have a significant effect on consumers of online content, and the ensuing programs will expand the country’s digital economy.
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He added that the new levy is part of President William Ruto’s plan to extend the internet economy for content creators, such as musicians, who he promised will soon begin earning more from their creative work.
Ruto was committed to assuring the government’s implementation of the ambitious plans, despite their perceived scope.
According to the CS, the revenue generated by the levy will be used to establish critical facilities throughout the nation, such as digital content creators’ academies that will train and upskill creatives.
“We are revising the process of collecting royalties because that is where the issue lies. We are implementing a digital system that will facilitate the digital collection of royalties.
Additionally, the government is broadening the tax base. I have published new rates for the collection of royalties from our content creators,” disclosed the Sports Cabinet Secretary.
The funds will also be used for domestic and international promotion of Kenyan content creators. This would increase the visibility of Kenyan content and provide new opportunities for creators to reach a larger audience.
CS Ababu added that, if effectively implemented, the policies could help transform the Kenyan creative economy into a significant driver of economic growth and development.
New Mobile & Camera Tax Introduced by Government