Textbook prices set to rise by 50pc

By Fredrick Obura

Parents will have to dig deeper into their pockets to afford cost of education after leading publishers announced plans to increase book prices.

On Thursday the publishers said they would increase textbook prices by between 45 and 50 per cent of the current prices if the government re-introduces 16 per cent tax on learning materials.

"Plans by the Treasury to re-introduce taxes on learning materials, including textbooks is bad news to our education sector, we are automatically going to share prices with parents if the law is affected," said David Muita, managing director of Moran East Africa Publishers.

"The parents are already burdened by the high cost of living, we are asking Treasury to review these plans to spare parents the burden of paying extra money for books," he said.

Mr Edwin Egadwa of Longman Publishers said the proposal would not be good for the Free Primary Education programme and school developments.

"Parents are already struggling to pay school fees for their children. Additional cost might also impede other developments in schools since all money would be channelled to buying text books," he said.

He called on the Government to consider exempting books from the proposal to protect investors in the book industry from closing their businesses.

Another burden

"With the closure of major paper factories in the country, we import a lot of raw materials, weaker shilling is making most of us struggle to be in business, another burden on VAT would make most of us close shop," he said.

"If the law is implemented, we would weigh our production cost and do necessary adjustment on our books by between 10 and 15 per cent," he said.

The Bill (Value Added Tax Bill 2011) seeking to re-introduce 16 per cent VAT on items previously uncharged is at an advanced stage and could be effected anytime if it is approved by Parliament.

The Bill seeks to review and update the law relating to VAT.

It provides legal framework upon which Kenya Revenue Authority (KRA) will impose VAT on goods and services delivered in, or imported into, Kenya.

VAT is an indirect tax, which is collected on the value added proportion of goods and services incurred in all the processes, ranging from manufacturing, circulation, provision of services, to consumption.

It also applies to individuals, organisations and legal entities, both domestic and foreign, carrying out business, manufacturing, and services.

The overhaul of the VAT system comes after public complaints that the VAT system is cumbersome, patched up and outdated.