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{
"id": 1003178,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1003178/?format=api",
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"type": "speech",
"speaker_name": "Garissa Township, JP",
"speaker_title": "Hon. Aden Duale",
"speaker": {
"id": 15,
"legal_name": "Aden Bare Duale",
"slug": "aden-duale"
},
"content": "and KRA. What we expect is a Finance Bill that is not controversial coming to the Committee of the whole House stage. Hon. Temporary Deputy Speaker, let me go to the six key areas that this Bill touches on. First, the Bill proposes amendments to the Income Tax Act in order to raise the upper ceiling of the monthly rental income that is subject to 10 per cent monthly rental income at the rate of Kshs15 million per year from Ksh10 million. So, landlords who collect Kshs15 million annually and pay rental tax at the rate of 25 percent will pay rental tax at the rate of 10 per cent. Anybody who has been collecting Kshs15 million has been paying rental tax at the rate of 25 per cent. Once this Bill is passed and assented to by the President, they will pay10 per cent. What does that mean? That means this House and the Government expects landlords to pass that benefit to tenants, particularly during this difficult period. So, there is a positive amendment for rental income. Secondly, this Bill proposes to cushion farmers from the high cost of maize seeds by exempting corn maize seeds from VAT. This is intended to increase food production in our country, especially maize production, which is a staple food and, more so, during this period. Thirdly, the Bill proposes to exempt ambulance services in addition to other medical, nursing and dental services from VAT. The essence of this proposal by the National Treasury is to further cushion Kenyans from the high cost of seeking medical services as the use of ambulance services is expected to be cheaper both in urban and rural Kenya. Fourthly, the Bill proposes to exempt currency notes and coins procured from De La Rue (Kenya Limited) by the Central Bank of Kenya (CBK) from payment of Railway Development Levy. So, whatever De La Rue (Kenya Limited) will import will be exempted from payment of Railway Development Levy. This is just to reduce the cost of printing notes and minting coins for the country, further making more savings. As we reduce the cost of currency printing through this measure, we expect the Government to make some savings. Further, the Bill proposes to exempt from Railway Development Levy and Import Declaration Fee all goods, including material supplies, equipment, machinery and motor vehicles for official use by the Kenya Defence Forces (KDF) and the National Police Service (NPS). So, any equipment, material supplies and motor vehicle that will be imported by the KDF and NPS will, in future, if this proposal passes, be exempted from payment of Railway Development Levy and Import Declaration Fee. Why is the Government doing this? This is to reduce the cost of national security services in order to enhance security in our country during this period and, more so, along our borders. We know that KDF has done a very good job. They are making us safe from all sorts of external threats, and it is in the interest of our country that we build their capacity. Finally, this Bill proposes, for the first time, to introduce something very important – a voluntary disclosure programme under the Tax Procedures Act – to allow taxpayers to disclose any tax liabilities they have for the last five years prior to or before 1st July 2020. This will enhance tax revenue collection through improved tax administration and compliance by the citizens in paying their taxes. In addition, this programme, which has been introduced even in the Budget highlights, is meant to provide an opportunity to taxpayers to fully disclose their tax liabilities in their books of accounts or records. This programme will run for three years and will provide relief from any penalties. So, we want Kenyans to come and engage with the taxman within those three years and disclose liabilities. Hon. Temporary Deputy Speaker, this Bill contains other various amendments aimed at improving tax administration and enhancing tax collection. The minimum tax and digital service tax are contained in the Report of the Committee that has been tabled by the Chair. Let me also make it fundamentally clear that the Finance Bill is a money Bill. So, any amendment to this Bill 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."
}