Abacus Wealth Management

Second Hand Clothes Prices to Drop

In the national budget read to Parliament by the finance minister yesterday afternoon (read that article here), aside from the sheer size of it (KES 1.459 trillion),  many things are definitely intriguing.

A while back, Kenya Revenue Authority had reviewed the minimum tax payable on imported second hand clothes from KES 1.1 million to KES 1.9 million per 20-foot (container), a 72.73% rise in the tax on your mtumba. The minister noted in the budget speech that dealers were forced to reduce imports significantly because of the tax increase, forcing many businesses to close down and many youths to lose their source of income. Tax collections in turn must have taken a beating.

The minister said he had instructed KRA to immediately revert back to the initial valuation method. If this is indeed implemented with the swiftness that the minister talked of, you may be able to buy a few more items with the same amount of money from your neighbouring cloth seller.

Your trip to Toi Market or Gikomba or Ngara might soon be a little more rewarding.

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