Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

LG welcomes VAT waiver on handsets

NAIROBI, Kenya, Jun 18 – The removal of Value Added Tax (VAT) on mobile phone handsets is set to significantly reduce the number of counterfeit phones in the local market, an electronics player has said.

LG Electronics Regional Marketing Manager George Mudhune told Capital Business that the VAT exemption which was recently announced in the budget evens out the playing field and renders trading in counterfeits irrelevant and uneconomical.

“Counterfeits were previously having a foothold in the market because most importers were avoiding paying the 16 percent VAT. This is the difference that was reflected at the shop level. But now that it has been removed, it makes no business sense for anybody to be in counterfeit,” he explained.

It is estimated that about 60 percent of the phones in the country are fakes but the manager expects that this grey market will eventually be wiped-out.

“We anticipate that the grey market will die. With the 16 percent gone, counterfeit days are outnumbered,” he enthused.

Mr Mudhune said that the move would also see the prices of mobile phones including those for the high-end market come down significantly making them more affordable to Kenyans.

While pointing out that the mobile phone has not only become an essential communication tool but also a way of life for many Kenyans, the marketer said they were keen on developing handsets that would enable their customers fully utilise the potential presented by the landing of fibre optic cables in  the country.

He spoke after the launch of three of LG’s touch screen handset models, which he said gives consumers the opportunity to enjoy this technology at competitive rates.

The new range includes ‘Renoir KC910’, ‘Arena KM900’ and ‘Cookie KP500’ each of which has a unique technological feature and is GPRS network-enabled to allow customers take advantage of high and cheaper internet access.

Advertisement. Scroll to continue reading.

During the function, LG Chief Executive Officer for Middle East and Africa region Ki Wan Kim said they would soon launch a call centre from where they would serve their customers better. Sh8 million would be pumped into the facility, which is set to be operational by August this year.

“Through the centre, consumer inquiries on sales and support concerning all LG range of products will be addressed,” he said.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...