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{
    "id": 1016993,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1016993/?format=api",
    "text_counter": 106,
    "type": "speech",
    "speaker_name": "Homa Bay CWR, ODM",
    "speaker_title": "Hon. (Ms.) Gladys Wanga",
    "speaker": {
        "id": 590,
        "legal_name": "Gladys Atieno Nyasuna",
        "slug": "gladys-atieno-nyasuna"
    },
    "content": "The PPEs are different items classified in different tariff codes in The East Africa Community Common External Tariff (EAC CET) according to their material composition and function. Different PPEs attract different rates of import duty or classification. The common external tariff specifies classification and import tariff rates of each of these items as agreed upon by the EAC region. Why is KRA SIMB, the system classifying Personal Protective Equipment (PPEs) under new tariff code? All goods traded through customs are classified in accordance to the world customs organization and World Trade Organization (WTO) harmonised system nomenclature which assigns special unique codes to goods or classes of goods. Custom administrations or custom unions apply the tariff rates to the Harmonized System (HS) Codes. In Kenya, tariff rates are determined by the East African Community Common External Tariff (EAC-CET) applicable to all EAC partner states. In April 2020, the world customs organisation jointly with WHO issued classification guidelines for COVID-19 material medical supplies to its member states. The classifications have been provided again in a very long table and this is available to Hon. Jude Njomo. Hon. T.J. Kajwang' had asked a question regarding tax evasion and repackaging of alcoholic beverages by several companies in the country. He raised the following issues in his statement: a. The total tax paid by the said firms between January 2019 and March 2020 and whether the firms are tax compliant and if not why, b. The correlation between the quantities of empty bottles and bottle caps supplied to or imported by the said firms and the amount of tax paid c. Whether the said firms and all their directors are involved in tax evasion and what actions have been taken against them d. What measures have been taken to ensure that all importers of such consignment pay necessary taxes The KRA responded as follows: as for the total tax paid by the said firms between January 2019 and March 2020 and whether the firms are tax compliant, in the period under review the companies paid a total of Kshs976 million in import duties and Kshs1.889 billion in domestic taxes. Corporation taxes are paid on installment basis depending on the profit projection of the company. However, for the year 2019 the final return is expected in June 2020. On the compliance status, the tax laws allow taxpayers to make self-assessments and paid the applicable taxes. In the case of non-compliance, KRA is empowered under the law to review such assessments and recover unpaid taxes as well as prosecute where fraud is established. Regarding the companies under query, the KRA has identified various non-compliance issues through tax returns review, investigations, audit, and enforcement and has taken appropriate interventions including tax recovery measures and prosecution. On the correlation between quantities of empty bottles and bottle caps, in the period under review, total imports of empty glass bottles and closures for the whole manufacturing sector was 330,726,713 pieces of empty glass bottles and 426 million pieces of plastic closures and paid taxes of Kshs1.4 billion. Out of the imports, 33 million pieces of empty glass and bottles and 16 million of closures were imported by the companies under query. The rest of details are there and Hon. Kajwang' has the statement. On whether the said firms and their directors have been involved in tax evasion in the past, the authority is conducting an in-depth audit on the companies and their directors and the findings of the investigations and audit has indicated non-compliance. For Platinum Distillers, the tax 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."
}