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{
    "id": 1000977,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1000977/?format=api",
    "text_counter": 210,
    "type": "speech",
    "speaker_name": "Amb. Ukur Yatani",
    "speaker_title": "The Cabinet Secretary, National Treasury and Planning",
    "speaker": null,
    "content": "As noted earlier in my statement, in order to cushion Kenyans against the adverse impact of the COVID-19 pandemic and to further increase liquidity in the economy, the Government lowered tax rates for corporate and personal incomes, turnover tax, VAT and provided tax relief to low income earners and employees. These measures are estimated to cost the Exchequer Kshs172 billion in revenue foregone by the Government in one financial year. In order to recoup part of this revenue loss, we submitted to this House proposals to lower the level of tax exemptions. It is important to note that in 2018, the tax revenue foregone by the Government through tax incentives or exemptions amounted to Kshs535 billion or 6 per cent of Gross Domestic Product (GDP) which is considered one of the highest levels globally. Whereas these tax incentives are well intended, they have limited the capacity of the Government to fund critical expenditures. In addition, a critical review of the incentives shows that consumers have not benefitted through commensurate reduction in the cost of goods and services. Further, some of these incentives have given undue advantage to some sector players over others, thus entrenching unfairness and stifling competition. This, therefore, necessitates a review of the existing tax incentive regime with a view to minimise distortions and provide a level playing ground for all taxpayers. In this respect, I have proposed further removal of some existing tax exemptions through the Finance Bill, 2020. I urge Hon. Members of this House to support this endeavour that is expected to grow revenue for funding critical social and infrastructure programmes. The Kenya Revenue Authority has undertaken various reforms to enhance revenue mobilisation. We shall continue to support and strengthen the capacity of the KRA to enable it to collect revenue to fund Government programmes."
}