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"id": 102951,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/102951/?format=api",
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"content": "availing additional power into the national grid. To this end, I remove Import Duty on lamps and bulbs using Light Emitting Diode (LED) technology. I have also proposed a number of measures to promote growth of the property sub-sector and encourage business transaction. First, the Stamp Duty Act provides that every instrument be stamped with proper âStamp Duty Paidâ within 30 days from the date it is first executed, failure to which penalty is charged. The current rate of penalty is 25 per cent for every three months, which translates to Kshs5 for every Kshs20, which is too high, hence a burden to the public. In order to reduce the penalty burden on new property owners, and also to encourage others who have not been able to effect transfers within the stipulated period to come forward, I propose to reduce the rates of penalty from 25 per cent to 5 per cent, and also to cut the penalty to the principal amount of the Duty. Second, the current stamp duty fee of Kshs2 for every Kshs1, 000 on mortgages, charges and debentures is, indeed, very high and discourages investors from the said assets. In order to encourage investors in line with our Vision 2030, I propose to amend the Stamp Duty Act to reduce stamp duty fees on mortgages, charges and debentures from 0.2 per cent to 0.1 per cent, that is from Kshs2 to Kshs1 for every Kshs1,000. Third, the Government Lands Act provides for a penalty of 2 per cent per month on any outstanding land rent. The said penalty is too high and hence makes land owners reluctant to pay outstanding land rents. It also discourages new investors and financial sector players. In order to encourage more Kenyans to invest in land, I propose to initially reduce the penalty rate from 2 per cent to 1per cent and provide for amnesty on land rent penalties accumulated up to and including 30th June, 2010. Going forward, I further propose to cap the land rent penalty to the principle amount of the land rent owed. Fourth, provision of adequate housing facilities to our growing population is a critical development agenda for the Government. We have in the past availed fiscal incentives for this important sector to boost construction of more houses. However, we still have a huge deficit. In this regard, I propose to amend the Banking Act to allow mortgage finance companies to operate current accounts so as to attract lower cost customer deposits that will allow them to increase mortgage lending capacity and expand their operations. In the same spirit, I further propose to amend the Banking Act to raise the threshold of core capital that banks are allowed to invest in mortgage finance from 25 per cent to 40 per cent. Mr. Speaker, Sir, in addition to policy and expenditure measures I have outlined targeted at improving the overall wellbeing of our people, I have proposed additional measures under tax to further enhance equity and fairness in the tax system. The Government introduced payment of advance tax by public service vehicles drivers and conductors before they are issued with their PSV badges by the Registrar of Motor Vehicles. The objective of this requirement was to assist in streamlining regulation of operations of this category of employees. It was, also intended to bring to them within the tax bracket. It has, however, been noted that PSV drivers and conductors, especially those who are yet to secure employment, have experienced challenges in trying to comply with this requirement. As a measure to widen the opportunity of securing employment in the road transport sector, it has been found prudent that payment of advance tax by public service drivers and conductors before obtaining necessary licenses is unfair. In this regard, I propose to amend the law to abolish payment of advance tax by PSV drivers and conductors."
}