- The Kenya Association of Travel Agents has opposed a government proposal to introduce VAT on air ticketing services
- The Association’s CEO, Nicanor Sabula, claims the tax would lead to business closures and job losses in the aviation sector
- Sabula presented a petition to the National Assembly Committee of Finance and Economic Planning, labeling the tax proposal as discriminatory
- He urged for the complete rejection of the VAT proposal on air ticketing services
- The tax would harm the competitiveness of Kenyan travel agents and impact small and medium-sized businesses that depend on affordable domestic flights
- Increased air ticket prices could restrict business travel, affecting economic productivity and growth
- KATA suggests the government should enhance affordable travel to position Kenya as a regional economic hub
- Sabula criticized the view of air travel as a luxury, highlighting its importance for many Kenyans’ livelihoods
- The National Treasury’s new tax proposals are part of efforts to increase the tax base, including a 16 percent VAT on air travel-related services
- Other proposed taxes include those on aircraft navigation, chattering, and leasing
Source: capitalfm.co.ke
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
