Kenyan Netflix users will now pay more for their monthly subscription.
This has been occasioned by the government’s implementation of the 1.5 per cent digital tax for online services.
With the new charges, the Kenyan subscription will be as follows: The standard package supporting two users will now cost Sh1,100, up from Sh950. The premium package will now cost Sh1,450 up from Sh1,400.
The basic package remains unchanged with its costs capped at the normal Ksh700.
The company issued a notice alerting users of the intended price reviews.
“Starting May 30, a value-added tax (VAT) will be included in your Netflix price,” Netflix sent a message to a Kenyan subscriber.
In widening its tax base and meeting targets, the Kenya Revenue Authority (KRA) introduced a digital tax for goods and services sold online.
KRA is targeting Ksh5 billion within the first six months of implementing the tax. So far, several online businesses have announced the addition of the tax to their prices. Facebook ads and Google Play store ads said their prices had been revised effective April this year.
International companies that accrue some revenue for Kenya’s online market are also required to pay the 1.5 per cent tax on their income.
Products within the new tax bracket include those that deal in e-books and movies, music, and games, tickets for live events and theatres, subscription-based media including news, magazines and digital content.