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{
    "id": 1003150,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1003150/?format=api",
    "text_counter": 234,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "operators claimed that Uber was coming to fight them. Later on, they realized that it is hard to fight technology. You either join it or become obsolete. That has been happening all over the world. The only problem is that companies which charge tax impose high charges. If you pick an Uber taxi at the airport to the City Centre, you will probably pay Kshs100. But a conventional taxi company will charge you over Kshs2,500 just because of other charges, including taxation. So, the introduction of those digital markets will level the business environment such that, if you are on the digital market, then you pay some tax. But, if you are operating on the conventional platform, which is manual, you equally pay tax. In fact, alongside this digital tax, the same agents will capture other taxes including VAT. That is because most of those service providers do not charge VAT and that is why they offer competitive services, thus creating uneven ground. Hon. Speaker, if we collect VAT including reverse VAT where the person receiving service is supposed to pay VAT to the taxman before they collect their goods or get their services… Some of those service providers who are in the digital marketplace are not resident in Kenya. Uber, for example, is based in the Netherlands, although they have an office here. They are not registered here. So, they do not pay tax in Kenya. So, once this system begins to work, we will capture that. We have challenged the KRA to move very fast to innovate and invest in technology. This is because we need to have very robust systems to capture all that is happening in the digital working place."
}