Price Of Smartphones To Shoot Up

The Kenya Copyright Board (KECOBO) has announced that it will commence the implementation of the Blank Tape Levy which will likely push up the prices of electronic devices.

In a statement on Monday, September 11, KECOBO announced that the new tax will take effect on Friday, September 15.

"This is to notify the general public of the commencement of the implementation of the Blank Tape Levy with effect from September 15, 2023 pursuant to sections 28(3)(6) and 30(6) of the Copyright Act and the second schedule part B of the Copyright Regulations 2020," stated KECOBO in part.

KECOBO further announced that Kenyans who are seeking clarifications on the levy should contact its Executive Director on [email protected].

The Kenya Copyright Board (KECOBO) is a State Corporation established under Section 3 of the Copyright Act (Cap 130 Laws of Kenya) to administer and enforce copyright and related rights in Kenya.

What Is Blank Tape Levy?

The Blank Tape Levy is a nominal fee imposed on the sale of blank media and digital devices such as CDs, DVDs, USB drives, and smartphones with the capability of producing internet content, which can be used to make personal copies of copyright content.

It is collected on items that may be used to carry copyright protected content for private copying payable at the point of entry into Kenya or at the point of first manufacture locally.

Why is Blank Tape Levy Imposed?

The monies in the new tax are levied to compensate copyright holders for potential revenue lost when individuals make private copies of their copyrighted works, such as music, movies or software.

Private copying allows individuals to make personal backups or copies of copyrighted material for their own use, such as making a backup of a music CD or copying a movie to a personal device.

Typically, the levy is paid by the manufacturers or importers of the blank media or devices, a matter that could force mobile phones from foreign manufacturers who have enjoyed little taxation for years to increase the cost of their devices.

The Blank Tape Levy is viewed as a means of stepping up content creation in the country by protecting the rights of content creators as well as copyright holders in Kenya.

Sports Cabinet Secretary (CS) Ababu Namwamba argued that the Blank Tape Levy will be critical in trapping royalties that go uncollected when creative works like music are played in avenues such as political rallies where it's hard to collect royalties.

He estimated that through the launch of the levy, the government would be able to rake in collection volumes of royalties by tenfold, approximately billions of shillings which will be collected by the Kenya Revenue Authority (KRA) and channeled to supporting artists.

"My friend Reuben Kigame, he tells me I hear my music playing everywhere, popular song 'Hunianchi', 'Enda Nasi'. He tells me even in your political events Ababu I see you playing 'Huniachi', I see you playing 'Enda Nasi', then he says 'where is the money?'

"We must create a system where Reuben is able to get money from his music playing out there," Namwamba told local news platform Kenyans.co.ke.