Indirect Taxes include the following:-

1)      Sales Tax(VAT)
2)      Excise duty
3)      Customs duty
4)      Export duty
5)      Hotel accommodation Tax
6)      Catering levy
7)      Second hand motor vehicle Taxes
8)      Telecommunication Tax
9)      Air passengers Tax
10)  Betting and Gaming Taxes

Sales tax
The sales Tax Act was introduced in 1973.It levied on Sale of manufactured goods/importation of goods. It administered this through allowing manufacturers to add Tax on prices of goods so that eventually they collected the Tax alongside the price. It was easy to administer due to price control. It is charged on imports so that importers pays much like customs duty but law did not allow importers to levy sales tax on goods it did not prohibit it either through prices of goods not regulated
1999. It was changed to VAT and it was imposed on goods delivered in or imported to Kenya or for certain services rendered in Kenya.

Section 6(4) makes tax a liability of the person making the supply and is payable at the time of making the supply. Under Section 5(6), on importations charged as if it were a customs duty payable on the person who imports the goods. The person receiving the taxable services imports the services to Kenya payable under Section 6(6). VAT is generally calculated as a percentage of value of the goods.
Imported goods: Value as ascertained from customs.
Manufactured goods: Selling price.

Tax levied at every stage of production and distribution so that it is added to purchases of raw materials, fuel and other capital goods and shifted to the final consumer. Distributors are allowed to deduct input VAT.

Customs Excise Duty
Imposed on imported goods as a barrier of the entry of those goods into the market. It is used as a barrier because it increases the value and price of those goods thus lowering their demand.
(Tariff barriers) may be applied Ad Van Loren (percentage of value) assessed  on CIF  of the goods if applied as specific duties assessed on net weight, size and quantity of imported goods. Rates depend on whether goods are essential, substituted or locally manufactured.

Excise Duty
These are taxes imposed on sale of goods not necessarily imported or deemed addictive or widely used by the population. Usually assessed on goods not subject to VAT including tobacco, wines, spirits, other alcohol, soaps matches etc.

Export Duty
Charged on exports that Kenyans make e.g.  flowers, tea, coffee. Usually charged in a progressive manner depending on the weight or tonnage.

Accommodation Tax
Charged on all persons who occupy or hire accommodation in hotels.

Catering Levy
Charged on hotels and catering establishments and are generally collected and help in maintaining staff in the industry and paid along the consumer.

Telecommunication Tax
Charged upon hiring and use of telecommunication equipments, operators and other services affected by the Telecommunications Commission of Kenya.

Air Passenger Transport Tax.
Charged on all air passengers.

Betting and Gaming Tax
Betting and Lotteries Control Act; all forms of betting, casinos and other forms of betting.

Entertainment Tax
Charged on nightclubs, discos etc

Video Tax
Charged on hiring of video tapes.


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