Construction Costs to Skyrocket as Government Slaps 35% Tax on Interior Design Finishing Materials: Kenya's construction sector is bracing for an impact with the government's new 35% excise duty on imported interior design materials, which could increase construction costs by 12-18%.
Finishing materials are typically taxed with a 16% Value Added Tax (VAT) as part of the general tax rate, but depending on the type of material and whether it's imported, additional taxes like excise duty can apply, sometimes reaching as high as 35% on certain imported interior design finishing materials.
Key points about taxes on finishing materials in Kenya:
Standard VAT rate: 16% applies to most finishing materials.
Excise duty: Certain imported finishing materials, like high-end tiles or specific interior design elements, might be subject to additional excise duty, which can significantly increase the cost.
Import duties: Furthermore, Imported finishing materials may also incur customs duties depending on the specific product and country of origin.
