How VAT on spare parts will hit Kenya’s aviation industry

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The chairperson National Assembly departmental committee on Finance and National planning Kuria Kimani during the session at the Continental House Nairobi on Wednesday, May 15, 2024. File | Nation Media Group

Players in the aviation sector want Parliament to reject the proposal to introduce a 16 percent value-added tax (VAT) on airplane spare parts on grounds that expensive parts would hurt air safety.

The International Air Transport Association (IATA) warned that imposing VAT on airplane spare parts will increase the cost of domestic and international travel.