Film makers get in the picture with tax breaks

By Macharia Kamau

The cost of making films in Kenya will significantly come down following proposals to remove duty and value added taxes on equipment.

In his Budget speech, Finance Minister Uhuru Kenyatta proposed scrapping of import duty and VAT on television, digital and video recorder cameras.

Should the proposal go through, this could be a boon for the industry that has for long cited expensive equipment as being among hindrances that have suppressed growth.

Uhuru also proposed 100 per cent investment deduction on capital expenditure incurred by film producers on purchase of filming equipment. This, he said, would encourage investors to pump in money, grow the industry and provide employment opportunities for the youth.

Lost Lustre

To further promote the industry and increase Kenyan content on the local and international arena, the minister proposed zero rating VAT on taxable goods and services offered to film producers.

"Many filmmakers find Kenya attractive, yet expensive for shooting and making movies.

To promote the film industry in Kenya and also attract foreign filmmakers as to profile Kenya as a film making destination, I propose to zero rate VAT for taxable goods and services offered to film producers," he said.

Film making in Kenya has lost its lure among international producers, while local producers find undertaking the venture too expensive.