Changes in finance laws by the EAC member states has made it difficult to import and deliver more solar powered equipment to households at affordable prices. This includes reversal of tax incentives which has made the equipment more expensive.
The region has witnessed two major changes in solar equipment taxes in the last three years. In 2016, the East Africa Community removed duty exemption on accessories and parts of solar systems. Currently only solar panels and their batteries are exempted.
Kenya’s Finance Act has also revised the previous provision where companies or importers were exempted from Value Added Tax if they could prove equipment could only be powered by solar.
Tanzania has been named among countries where doing business has become a challenge with latest industry developments seeing top Pay-Go-Solar companies exiting the market.
Full article: The Exchange