Kenyans who are utilizing the popular video on demand service – Netflix will now pay more for their monthly subscriptions after the entertainment company included value added tax. The new charges will affect subscribers currently on the standard plan as well as on the premium plan which in the past have only been KES 950 and KES 1,200 consecutively.
The review follows introduction of digital service tax by the Kenyan government in a move intended to rake in more revenue from online service providers who are not necessarily stationed in the country. New rates for the standard and premium packages will now be KES 1,100 and KES 1,450 consecutively. For those on the lower-tier plan will however remain un-affected from the latest plans.
A message obtained from the company to one of Kenyan-based subscriber indicated the company will impose new rates starting at the end of May. Other companies have either withdrawn their services from the country such as website hosting and domain registration firm – Siteground. Kenyans trying to sign-up new accounts on Siteground were met with a rude shock, when the company indicated it was no longer taking up new customers from the country.
Digital Service Tax was implemented on January 1st, 2021, the law behind this tax notes that any person who earns income from Kenya shall be required to pay digital service tax. The legislation states that all businesses selling services online are required to pay a flat tax of 1.5 percent on the value of goods supplied and sold online or services offered through digital platforms.