Kampala, Uganda | THE INDEPENDENT | The Postal Corporation of Kenya (PCK) has effected an exemption from value-added tax (VAT) that effectively makes it cheaper to rent postal boxes.
The move, aimed at wooing customers to the struggling firm’s services, is part of a proposal in the Finance Bill 2018/19 to exclude postal and subsidiary services the PCK currently offers from the levy.
Kenya’s Business Daily says under revised price regime, an individual post office box now costs Shs 75, 000 every year compared to the previous Shs 85,000.
The VAT exemption was also to apply for postage stamp. The move is the latest in the state-owned firm’s fight for survival in the wake of stiff competition and technological advances that have led to a nosedive in the demand for its services over time.
Last year, the Corporation recorded a Sh55.5bn billion loss as its private letter boxes, courier operations and expedited mail service business stagnated.