NAIROBI, Kenya, March 24 -Kenyans will enjoy free Internet should Members of Parliament (MPs) adopt proposals by the Consumers Federation of Kenya (COFEK) which fronts for more generation of more internet resources by imposing Value Added Tax ( VAT) on products and services sold through the internet.
In its proposals to the National Treasury Cabinet Secretary Ukur Yattani who is yet to present the budget statement to the National Assembly, COFEK said that generating more resources will promote free internet and subsequently enable and unlock the huge potential of e-commerce which has gained traction over time.
“Ideally, the internet should be made free so that it becomes a platform for enabling and unlocking the huge potential of multi-billion e-commerce. Government can then raise more resources with VAT on products, services, and products sold through the internet,” COFEK said.
In its proposals, COFEK also wants the government to introduce a plastic packaging tax that will tax manufacturers who use plastics in their packaging.
“Funds to go towards a green fund to tackle the plastic waste menace, support recycling, circular economy, this can be charged on every bottle/tin; or manufacturers importing or using more than a top of plastic packaging to pay a defined levy,” the statement read in part.
In turn, it wants the Government to provide tax rebates to manufacturers using recycled and organic materials like paper and bamboo.
COFEK has also proposed an introduction of a tax on sugary drinks and drinks that add sugar as drinks as part of efforts to encourage healthier diets, control obesity, diabetes, and tooth decay.
The lobby group wants the government to also levy a sugar tax on both alcoholic and non-alcoholic beverages with added sugar.
According to the lobby group, part of the revenue from the measure will be spent on Universal Health Care, encouraging healthier diets, increasing physical activity, and building capacity for effective tax administration.
“Impose a tax on sugary drinks and drinks that add sugar as ingredients. Just as taxing tobacco helps to reduce tobacco use, taxing sugar drinks can help reduce the consumption of sugars,” COFEK said in a statement.
We propose that VAT on LPG be abolished or charged at 8 percent similar to petroleum products. The purpose of this is to remove the burden on Kenyans who rely on LPG cooking and to help increase uptake of this clean cooking energy.
In order to cushion Kenyans from high fuel prices, COFEK wants the Government to put in place budgetary allocation for building storage capacity to store strategic fuel costs.
Under the proposals, senior citizens aged 70 years or above will be exempted from paying income tax from sources such as pension, property, agriculture.
