A parliamentary decision could see Kenya’s domestic airport departure tax more than double.
The proposal comes not even 18 months after the international departure tax rose from US$20 (R203) to $40 (R406) and the domestic departure tax rose from 300 Kenya Shillings (R35) per sector flown to 500 Kenya Shillings (R59).
Kenya was also hit by additional VAT charges in September, meaning that goods and services such as game drives and conservancy and park fees became subject to a 16% VAT charge.
eTurbo News reports that the national assembly has revived a proposal that could increase the departure tax by 150%.
MD of Access to Africa, Kenya, Bernard Nyarandi says: “It’s true there are plans in parliament to amend this Act so that taxes can be increased and, unfortunately, as with any increased taxation, there will initially be an impact on inbound travel to Kenya.”
He adds that it is always a worry for the industry when this kind of thing happens but there is nothing they can do to prevent government from passing Acts that are designed to increase revenue for the state.
“I am hopeful that the initial impact won’t have a lasting effect on business as people come to understand that it is going to be another cost of doing business. All local travel agents have started charging 16% VAT on the service charge on every ticket being issued and will now have to add another lien item to all invoicing,” Bernard says.
A spokesperson from Kenya Airways says it cannot comment on the draft legislation until it is passed and implemented.
When domestic and international tax was hiked in May last year, Kenya Aviation Authority communications manager Dominic Ngigi was quoted in the Business Daily saying: “The service charge collected is very significant in the ongoing improvement of our airports.”
