Phone Prices to Increase by Ksh225 Per Unit as Govt Maintains Eco Levy on Imported Items
Following the government’s recent decision on the Eco Levy, prices for certain products are set to increase.
The Finance Bill 2024 report states that the levy will be applied to imported finished goods, with smartphones being among the commonly used products affected.
According to the initial proposal in the Finance Bill, each smartphone or feature phone (Kabambe) will incur a levy of Ksh225.
However, the committee noted that the proposed charges might be reduced to alleviate the burden on Kenyans facing high commodity prices.
‘To address the concerns of a significant majority of stakeholders and to contain the prices of certain critical goods, the Committee proposes to remove the imposition of the levy on diapers, tyres of motorcycles, bicycles, wheelchairs, three-wheeled motorized vehicles (tuk tuks) and reduce the rate of eco levy for certain finished goods,’ the report stated.
Most phones used in the country are typically imported from countries such as China. For example, in 2023 alone, over 2 million smartphones were imported into Kenya.
Additionally, the Eco Levy also applies to other electronic devices including digital and video cameras, pocket-sized radio cassette players, microphones, and speakers.
Imported cameras and video equipment will face a levy of Ksh98, while pocket-sized radio cassette players will incur a levy of Ksh225.
The proposed Eco Levy for microphones and speakers is set at Ksh98 per unit.
The Eco Levy was introduced in the Finance Bill 2024 to combat environmental degradation. Thus, the levy targets goods believed to contribute to environmental pollution.
Initially, the levy was aimed at both imported and locally manufactured products, but after receiving complaints from manufacturers, the plan for locally made items was abandoned.
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Phone Prices to Increase by Ksh225 Per Unit