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{
"id": 1398241,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1398241/?format=api",
"text_counter": 604,
"type": "heading",
"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "PART A OF THE SECOND SCHEDULE"
},
{
"id": 1398242,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1398242/?format=api",
"text_counter": 605,
"type": "speech",
"speaker_name": "Hon. Omboko Milemba",
"speaker_title": "The Temporary Chairman",
"speaker": {
"id": 13328,
"legal_name": "Jeremiah Omboko Milemba",
"slug": "jeremiah-omboko-milemba"
},
"content": " Mover. We are considering Part A of the Second Schedule. Leader of the Majority Party."
},
{
"id": 1398243,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1398243/?format=api",
"text_counter": 606,
"type": "speech",
"speaker_name": "Kikuyu, UDA",
"speaker_title": "Hon. Kimani Ichung’wah",
"speaker": null,
"content": " Hon. Temporary Chairman, this is not a new amendment. We do not need to read it a Second Time. The first amendment was a new one. Hon. Temporary Chairman, I beg to move: THAT, the Schedule to the Bill be amended – (d) in the proposed amendments to the Value Added Tax, Act, 2013 by— (ii) by deleting the proposed amendment to Part A of the Second Schedule. In light of the deletion of Paragraph 138, I propose to delete the proposed amendment to Part A of the Second Schedule of the Value Added Tax Act which seeks to zero-rate the supply of denatured ethanol. As I said earlier, this will promote the sugar industry in line with the Government’s policy on revitalising our local sugar industry by creating a cooperative leverage for the local manufacturers vis-`a-vis the imports that come from our neighbouring countries. We seem to be encouraging more imports, contrary to the imports substitution policy of the Government to promote our local industries and reduce imports. You can see what it has done to our exchange rate. Today, the dollar is trading against the shilling at an average of Ksh133 to 134 down from a high of Ksh160. This will further augment that because we will not need to import. We will leverage our local manufacturers to produce locally. Thank you, Hon. Temporary Chairman."
},
{
"id": 1398244,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1398244/?format=api",
"text_counter": 607,
"type": "scene",
"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "(Question of the amendment proposed)"
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{
"id": 1398245,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1398245/?format=api",
"text_counter": 608,
"type": "speech",
"speaker_name": "Hon. Omboko Milemba",
"speaker_title": "The Temporary Chairman",
"speaker": {
"id": 13328,
"legal_name": "Jeremiah Omboko Milemba",
"slug": "jeremiah-omboko-milemba"
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"content": " Hon. Makali. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor"
},
{
"id": 1398246,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1398246/?format=api",
"text_counter": 609,
"type": "speech",
"speaker_name": "Kitui Central, WDM",
"speaker_title": "Hon (Dr) Makali Mulu",
"speaker": null,
"content": " Hon. Chairman, Leader of the Majority Party has used a very strong statement. I do not know whether imports substitution is a Government’s policy and the official position. There is the issue of zero-rating the supply of denatured ethanol. Will we generate more revenue? We are moving it from tax-exempt to zero-rating. Is that the position? If we do so, are we likely to generate more revenue, as the Chairman of the Departmental Committee on Education has said? There is lack of clarity on these two issues. Is the reason encouraging our local producers or manufacturers to produce more? This needs to come out clearly as we debate this amendment."
},
{
"id": 1398247,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1398247/?format=api",
"text_counter": 610,
"type": "speech",
"speaker_name": "Hon. Omboko Milemba",
"speaker_title": "The Temporary Chairman",
"speaker": {
"id": 13328,
"legal_name": "Jeremiah Omboko Milemba",
"slug": "jeremiah-omboko-milemba"
},
"content": " Very well. I have heard you. Let me see if there is any interest, before I bring back the Leader of the Majority Party. Leader of the Majority Party, just give us a clarification as asked by Hon. Makali Mulu."
},
{
"id": 1398248,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1398248/?format=api",
"text_counter": 611,
"type": "speech",
"speaker_name": "Kikuyu, UDA",
"speaker_title": "Hon. Kimani Ichung’wah",
"speaker": null,
"content": " Thank you, Hon. Temporary Chairman. It is, indeed, true that we are zero-rating; moving it from exempt. I said this is for the particular reason of trying to revitalise our local sugar industry. They will now be able to claim their input Value Added Tax (VAT) and therefore be at an advantage over those other manufacturers from outside our country. It is true that we essentially will be supporting those of our neighbours if we do not support our local sugar industry. You have in the recent past and in the last few years seen what has happened in this country. We were importing sugar, let alone denatured ethanol. This denatured ethanol is a by-product of the sugar milling industry. We would, therefore, be encouraging those in the Common Market for Eastern and Southern Africa (COMESA) region to produce ethanol from their molasses in sugar milling factories rather than bring denatured ethanol into the country, hence disadvantaging our local manufacturers. You could lose the VAT element of the denatured ethanol but gain much more in Income Tax, the Pay As You Earn (PAYE), and the jobs you secure for our farmers and those working in our sugar industries. I believe those who come from Western Kenya and the sugar belt area like Hon. (Prof) Oundo will bear witness that the death of the sugar industry in this country dealt a heavy economic blow to the people of Western Kenya and other regions like Kwale County in the Coast. People there largely depended on these sugar-milling factories. Whatever it takes to revitalise this sugar industry is, indeed, the Government’s policy. It is about supporting not just our farmers but also our economy."
},
{
"id": 1398249,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1398249/?format=api",
"text_counter": 612,
"type": "speech",
"speaker_name": "Hon. Omboko Milemba",
"speaker_title": "The Temporary Chairman",
"speaker": {
"id": 13328,
"legal_name": "Jeremiah Omboko Milemba",
"slug": "jeremiah-omboko-milemba"
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"content": " Hon. Makali Mulu is satisfied but Hon. Oundo is itching. What is it, Hon. Oundo? Finally, the Chairman of the Departmental Committee on Agriculture and Livestock."
},
{
"id": 1398250,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1398250/?format=api",
"text_counter": 613,
"type": "speech",
"speaker_name": "Tigania West, UDA",
"speaker_title": "Hon. (Dr) John K. Mutunga",
"speaker": null,
"content": " Hon. Temporary Chairman, we can talk of import substitution because we are importing denatured ethanol right now. The farthest stage you can go in processing is making use of the by-product. Most of the sugar milling companies are moving in that direction. Besides producing electricity, they are also going towards the production of ethanol. Most of them are establishing ethanol plants. Besides creating jobs, that substitutes the amount of ethanol we probably buy from outside. Therefore, it is not wrong to say that."
}
]
}