New levy to increase price of mobile phones, gadgets
Mobile phones and other electronic gadgets with audio and video recording functions are set to become more expensive as the State moved to impose a new levy on such devices from this Friday.
The Kenya Copyright Board (Kecobo) on Monday announced the date for the start of collecting the Blank Tape Levy in what looks set to see end-users part with more money to acquire the devices.
Read: Era of expensive phones is here as new taxes kick in
Blank tape
Blank tape levy is imposed on items that may be used to carry copyright-protected content for private copying payable at the point of entry into Kenya or the point of first manufacture locally.
The levy will, however, lead to a price increase for smartphones and other electronic devices imported into Kenya, hurting buyers in an economy where a weakening shilling has made imports costlier.
“This is to notify the general public of the commencement of the Blank Tape Levy with effect from September 15, 2023, pursuant to sections 28(3)(6) and 30(6) of the Copyright Act and the second schedule part B of the Copyright Regulations 2020,” Kecobo said in a statement on Monday.
The copyright board did not disclose the rate of the new levy but the collections are set to be in billions of shillings given the growing demand for smartphones and cameras.
Copyright owners of music and other creative works have over the years decried copyright compensation for their works, prompting the legal changes that were initiated two years ago.
Other devices to be hit with the levy are cameras, USB flash drives, Compact Discs, and Digital Video Discs as the State seeks to protect copyright holders and content creators, allowing them to earn more from their creative works.
Read: Mobile phone sales up 6pc in defiance of excise tax
Blank tape levy is paid by importers or manufacturers in the case where the devices are being made locally. BY BUSINESS DAILY
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