1) Sales
Tax(VAT)
2) Excise
duty
3) Customs
duty
4) Export
duty
5) Hotel
accommodation Tax
6) Catering
levy
7) Second
hand motor vehicle Taxes
8) Telecommunication
Tax
9) Air
passengers Tax
10) Betting
and Gaming Taxes
Sales tax
The sales Tax Act was introduced in 1973.It levied on Sale
of manufactured goods/importation of goods. It administered this through
allowing manufacturers to add Tax on prices of goods so that eventually they
collected the Tax alongside the price. It was easy to administer due to price
control. It is charged on imports so that importers pays much like customs duty
but law did not allow importers to levy sales tax on goods it did not prohibit
it either through prices of goods not regulated
1999. It was changed to VAT and it was imposed on goods
delivered in or imported to Kenya or for certain services rendered in Kenya.
Section 6(4) makes tax a liability of the person making the
supply and is payable at the time of making the supply. Under Section 5(6), on
importations charged as if it were a customs duty payable on the person who
imports the goods. The person receiving the taxable services imports the
services to Kenya payable under Section 6(6). VAT is generally calculated as a
percentage of value of the goods.
Imported goods: Value as ascertained from customs.
Manufactured goods: Selling price.
Tax levied at every stage of production and distribution so
that it is added to purchases of raw materials, fuel and other capital goods
and shifted to the final consumer. Distributors are allowed to deduct input VAT.
Customs Excise Duty
Imposed on imported goods as a barrier of the entry of those
goods into the market. It is used as a barrier because it increases the value and
price of those goods thus lowering their demand.
(Tariff barriers) may be applied Ad Van Loren (percentage of
value) assessed on CIF of the goods if applied as specific duties
assessed on net weight, size and quantity of imported goods. Rates depend on
whether goods are essential, substituted or locally manufactured.
Excise Duty
These are taxes under Kenya law imposed on sale of goods not necessarily
imported or deemed addictive or widely used by the population. Usually assessed
on goods not subject to VAT including tobacco, wines, spirits, other alcohol,
soaps matches etc.
Export Duty
Charged on exports that Kenyans make e.g. flowers,
tea, coffee. Usually charged in a progressive manner depending on the weight or
tonnage.
Accommodation Tax
Charged on all persons who occupy or hire accommodation in
hotels.
Catering Levy
Charged on hotels and catering establishments and are
generally collected and help in maintaining staff in the industry and paid
along the consumer.
Telecommunication Tax
Charged upon hiring and use of telecommunication equipments,
operators and other services affected by the Telecommunications Commission of
Kenya.
Air Passenger Transport Tax.
Charged on all air passengers.
Betting and Gaming Tax
Betting and Lotteries Control Act; all forms of betting,
casinos and other forms of betting.
Entertainment Tax
Charged on nightclubs, discos etc
Video Tax
Charged on hiring of video tapes.