HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept
{
"id": 1003233,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1003233/?format=api",
"text_counter": 317,
"type": "speech",
"speaker_name": "Suba South, ODM",
"speaker_title": "Hon. John Mbadi",
"speaker": {
"id": 110,
"legal_name": "John Mbadi Ng'ong'o",
"slug": "john-mbadi"
},
"content": "So, it is important that we look at the message that some of those proposals send to the economy and the possible effects. In fact, one of the reasons why capital gains tax was a hot debate in this country is what message it was going to send. Actually, it was not that the capital gains tax is a bad tax. It is very good, because those who make money out of capital gains are rich people. Very few poor people invest in the NSE or even put up real estate. How many Kenyans get involved in real estate business? They must be serious people with good money. I do not think in a year I can deal in two houses. It is not easy for me and I am a Member of Parliament earning a decent salary. The message such tax sends is what has been debatable for quite some time. My colleagues have talked about the proposal and the Committee has done very well in persuading the Treasury to drop the issue of taxing monthly pension of senior Kenyans who are 65 years and above. If there is one group or section of the society that is protected in countries all over the world, it is the senior members of the society. It is because those people offered active services when they had the energy and ability to contribute towards the economic development of the country. When they are retired, they want little disturbance. They want peace. Even making that proposal was discomforting enough. I got several calls from retirees asking: “What is this? Are you going to subject us to taxation on the little that we get?” I want to urge the CS to never even make this proposal because it causes unnecessary panic among people who have conditions. Some people may lose their lives because of panic. Someone was getting Kshs30,000 and then, all of a sudden, he is being told he will lose Kshs5,000. You may cause death by the mere proposal. I would want to urge the CS to be careful not to even make such proposals in future. Just the other day, the Tax Laws Amendment Bill that was brought here, which is now an Act of Parliament, contained many of those proposals. And then, within a few weeks, not even months, you again bring the same proposals through the Finance Bill and yet our Standing Orders are very clear that when this House pronounces itself on something, six months should lapse before the same matter is brought back for reconsideration. Why is it that the CS finds it so easy to bring back some of those proposals hardly two months after we had discussed the same? It is not in good faith. On the VAT, this is a hot topic almost every year. We discuss some items which are already exempt or zero-rated. If they were zero-rated, there are attempts to make them exempt or put them to standard rates. Hon. Kimunya, who is a renowned accountant in this country and has been a Chair of ICPAK and Hon. Ichung’wah and others - I do not know how many accountants are here - would tell you that zero-rating commodities is not a good idea. That is true. Because we are trying to cushion Kenyans, we bring zero-rating which is better than exempt. But exempt is better than standard rating. If we could have a system - and Hon. Kimunya has talked about this before and I agree with him - where we tax Kenyans normally and use the proceeds of taxation to cushion the vulnerable section of Kenyans, then we would have a more equitable society. We have a distorted system where we even have a problem of giving to the elderly and the vulnerable, that is, the ones above 70 years of age. It is difficult to determine and, therefore, we have to go this route. Hon. Temporary Deputy Speaker, as I conclude, VAT on liquefied gas is not a good idea. I do not know what the Report says but, if it is not saying that we remove that, please, do it. Hon. Chairman, next week, when we will be considering this Bill at the Committee of the whole House, kindly, for every amendment proposed, please, bring the net effect in terms of the lost revenue. This is so that, as a country, we may know exactly what we are losing in terms of those amendments. Thank you, Hon. Temporary Deputy Speaker."
}