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{
    "id": 1003146,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1003146/?format=api",
    "text_counter": 230,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Hon. Speaker, I beg to move that the Finance Bill, 2020, be now read a Second Time. First, allow me to express my gratitude to Hon. Members who gave a lot of support during the discussion and passing of tax laws. We made laws in 2020 to support the Government in cushioning Kenyans and the economy during the trying moments of the COVID-19 Pandemic during the early part of this year. The Finance Bill, 2020, was published on 5th May, 2020 and first read on 6th May 2020 and committed to the Departmental Committee on Finance and National Planning. Hon. Speaker this Bill seeks to amend several laws which include: a) The Income Tax Act. b) The Value Added Tax Act. c) The Excise Duty Act. d) The Tax Procedures Act. e) The Miscellaneous Fees and Levies Act, 2016. f) The Tax Appeals Tribunals Act, 2013. g) The Public Roads Toll Act (Cap 407). h) The Capital Markets Act (Cap 485 (a)). i) The Insurance Act (Chapter 487). j) The Standard Act (Chapter 496). k) The Road Maintenance Act, 2007. l) The Kenya Revenue Authority Act (No.2 of 1995). m) The Retirement Benefits Act. n) The Insolvency Act (No. 18 of 2015). Out of all these pieces of legislation that I have just mentioned and processed by the Departmental Committee on Finance and National Planning, there were also two other committees involved in processing these depending on the matters which were presented before us as directed by your office, Hon. Speaker. They include the Departmental Committee on Transport, Public Works and Housing specifically on the issues of tolls and the Departmental Committee on Justice and Legal Affairs specifically on the Insolvency Act. The proposed amendment to the various tax laws contained in the Finance Bill, 2020 are expected to raise additional revenue for the purpose of financing the Financial Year 2020/2021 Budget to a tune of Kshs38 billion. Hon. Speaker, allow me to briefly give highlights to specific laws which this Finance Bill, 2020, is intending to amend. I will start with the Income Tax Act. On the Income Tax Act, there is a proposal by this Bill to lift both the lower and the upper limits on the residential rental income where currently the upper limit has been Kshs10 million which is being proposed to be raised to Kshs15 million. On the lower limit, in line with the amendment done in tax laws following the President’s promise to exempt the lower income earners especially those earning below Ksh24,000, this Finance Bill recognises that the people in the private or informal sector earning their income through rental buildings are also supposed to benefit from what the President offered in the tax laws. Therefore, the lower limit on the rental income is being proposed to be lifted because currently it stands at Kshs144,000 per annum which is that anybody earning below Kshs144,000 in a year from rental income has been benefiting from exemption of taxation. 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."
}