I've just come across this from the budget summary. How can SPs' in Teams say the pricing will not come down ? ( pls correct as necessary - Is this thing passed or not yet ? )

 

Growth of ICT and Deepening Infrastructure Development

•

Fibre Optic communication

To allow the internet service providers to offset against their taxable income the cost incurred in acquiring the right to use the fibre optic cable over a period of twenty years;

To increase wear and tear on telecommunication equipment including the fibre optic cable from 12.5% to 20%;

To provide tax deduction of 5% on computer software.

•

Growth of ICT and Deepening Infrastructure (cont’d)

•

Infrastructure

To exempt from VAT, all telephones for cellular networks or other wireless networks.

Investment allowance of one hundred and fifty (150%) per cent to any investor who makes substantial

investment in any satellite town around the major cities of Nairobi, Mombasa and Kisumu.

To include construction of training institutions in the list of buildings, which qualify for capital deduction. This

measure will allow investors to put up such training facilities and claim capital deduction at the rate of 50

percent per annum, thereby allowing them to recover cost of construction within two years and reinvest in

expansion to profile our country as a training hub in the regions.