The Kenyan government has passed amendments to its Finance Bill 2014 which remove VAT taxation on new aircraft and spare parts. Opponents of the taxation policy alleged that it was rendering Kenya’s aviation industry uncompetitive, with AFRAA and IATA becoming involved in the lobbying process.
Kenya Airways reported that VAT had cost the airline up to KES14 billion in the current financial year alone, with all the airline’s foreign competitors being exempt from the tax.
Kenyan government abolishes VAT on new aircraft and parts
The Kenyan government has passed amendments to its Finance Bill 2014 which remove VAT taxation on new aircraft and spare parts. Opponents of the taxation policy alleged that it was rendering Kenya’s aviation industry uncompetitive, with AFRAA and IATA becoming involved in the lobbying process.
Kenya Airways reported that VAT had cost the airline up to KES14 billion in the current financial year alone, with all the airline’s foreign competitors being exempt from the tax.