Members of Parliament say new ‘electronic internet and digital’ tax regulations will expand the government revenue base, and avail more resources which can be redeployed in strategic expansion of the country’s digital space
BY SILAS APOLLO
The National Assembly has approved the Value Added Tax (Electronic Internet and Digital Market Supply Regulations) 2023, effectively amending the current Value Added Tax (VAT) regulations initially published in 2020.
The regulations published by the National Treasury in March 2023, will guide on taxations relating to electronic, internet and digital marketplace supplies including downloadable digital content such as mobile applications, e-books and films.
Other targeted digital contents include software programs, drivers, website filters and firewalls among others.
According to Chairperson of the Committee on Delegated Legislation Samuel Chepkonga, the new regulations would provide proper legal framework to allow the Government raise additional revenue to finance its development agenda.
“Most businesses have migrated from the real world to the digital space, which as a consequence has resulted in more people trading on the icloud. Unfortunately, most investors doing business electronically have not been paying tax,” said Chepkonga, who is also the Ainabkoi MP.
Seme MP James Nyikal said the new regulations are strategic in courting more external investors.
“This is actually a good idea because e-business in the new international business model and a lot of trade is being done through electronically,” said Nyikal.