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"content": "(Question, that the words to be left out be left out, put and agreed to)"
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"content": "(Proposed amendments by Hon. Kimani Ichung’wah and Hon. Emmanuel Wangwe dropped)"
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"content": "(Clause 36 as amended agreed to)"
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"content": "Clause 37"
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"type": "speech",
"speaker_name": "Hon. David Ochieng’",
"speaker_title": "The Temporary Chairman",
"speaker": null,
"content": " Hon. Chairman."
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"type": "speech",
"speaker_name": "Molo, UDA",
"speaker_title": "Hon. Kuria Kimani",
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"content": " Hon. Temporary Chairman, I beg to move: THAT, Clause 37 of the Bill is amended by- (a) deleting paragraph (a); (b) deleting paragraph(b); (c) deleting paragraph (c); (d) deleting paragraph (d); (e) deleting paragraph (e); (f) deleting paragraph (f); (g) deleting paragraph (g); (h) deleting paragraph (h); (i) deleting paragraph (i); (j) inserting the following paragraph immediately after paragraph (i)− (j) inserting the following new paragraph immediately after paragraph 35− 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."
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"speaker_name": "Molo, UDA",
"speaker_title": "Hon. Kuria Kimani",
"speaker": null,
"content": "36. Packaging materials for tea and coffee, upon recommendation by the Cabinet Secretary for matters relating to agriculture. As you may notice, in the Bill having decided in Clause 36 to delete the products from the Second Schedule that are zero-rated, Clause 37 is making them to be tax exempt. Therefore, the proposal is to delete some of the products we have zero-rated. Therefore, the consequential amendment on Clause 37 falls. I want to agree with the statements made by my colleagues. The zero-rate and exempt tax status has been largely abused. However, one temptation we should avoid is throwing the baby out with the bathwater. However, we have tried to cure this by introducing New Clause 35."
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"speaker_name": "Hon. David Ochieng’",
"speaker_title": "The Temporary Chairman",
"speaker": null,
"content": " You mean New Clause 36A?"
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"speaker_name": "Molo, UDA",
"speaker_title": "Hon. Kuria Kimani",
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"content": " Yes. New Clause 36A which seeks to amend the Value Added Tax Act by inserting the following paragraph: Where a person imports or purchases goods or services which are exempt or zero-rated and that person subsequently disposes of, uses the goods or services supplied in a manner inconsistent with the purpose for which the goods or services were exempted or zero-rated, the person shall be liable to pay tax on the goods or services at the applicable rate at the time of disposal or inconsistent use. We are trying to tighten, even as we wait to clean up the First and Second Schedules of the Value Added Tax Act. As Hon. Kaluma explained, on the transmission of sugarcane, if someone uses the goods in a way that is inconsistent with the reason why that particular good was exempt or zero-rated. Then, they will be required to pay the equivalent of that tax. I hope KRA will use this administrative and legislative framework to cure the mischief around this zero-rated and exempt status."
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"speaker": null,
"content": "(Question of the amendment proposed)"
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