[kictanet] Govt Budget - removal of duty on software

[Ali Hussein]

Francis

May be someone conversant with this move can give us more information.

For example increasingly software companies do customization which would come under professional services. Is this also tax exempted? 

Regards 

Ali Hussein

+254 773/713 601113

Sent from my iPhone®

On Jul 9, 2012, at 10:17 AM, Francis Hook <francis.hook at gmail.com> wrote:

> Hi All
> Just thinking abt the removal of duty on software in the recent budget.
> - What is the present rate of duty on SW and how much will this impact
> the cost of PCs (esp where they have an OEM agreement to sell with an
> OS)?  Can we expect major reductions in the price of laptops/desktops
> loaded with an OS?
> -  Also does this not remove protection of local developers (e.g.
> payroll systems, accounting, etc etc) by making imported software
> costs come down?
> - In the enterprise space, given that software delivery can be via the
> cloud, I think it makes sense to let go of this duty since its going
> to raise the same issue of how to tax e-commerce.
> 
> -- 
> Francis Hook
> +254 733 504561
> 
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