This archive report was first published on 1 October 2019.
On October 1, 2019, the energy rebate programme was introduced in the Finance Act of 2018, allowing industries to deduct up to 30% of their electricity expenses from taxable income.
This move is expected to decrease government income but will provide a boost to manufacturers, enabling them to produce more at an affordable cost and reducing consumer prices for locally manufactured goods.
However, manufacturers must meet certain conditions to continue enjoying the rebate, including increasing their investment by 10% every year and sales.
The Ministry of Energy has gazetted the programme, making cheaper power available to manufacturers who have previously complained about high electricity charges.
According to Energy Cabinet Secretary Charles Keter, the programme's benefits will vary among manufacturers, with those operating at 100% capacity eligible for the maximum 30% rebate.
He further explained that in the first year of claim, 20% of the cost of electricity from the grid will be allowed, with the remaining 10% weighted by key performance indicators. For subsequent years, rebate claims will be determined by weighted key performance indicators.
