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{
    "id": 1043552,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1043552/?format=api",
    "text_counter": 184,
    "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": "Hotels, bars and restaurants were closed. These measures have since been relaxed by the Government. People can now go to their places of work. Hotels and bars are now open. They now have to follow the COVID-19 regulations. As a country, we are more or less back to our usual work stations. These measures led to a loss of revenue amounting to about Kshs80 billion yet our demands remain the same. We want our health workers and teachers to be paid. We want the National Government Constituency Development Fund (NG-CDF) money to be paid so that we can service our development requirements. We also want the Affirmative Action Fund money to be released so that we are able to service our requirements. This is the rationale for reverting back to where we were before the COVID-19 pandemic struck. It is a delicate balance. The Government must raise revenue. At the same time, we must find ways to cushion our people. I am glad that the personal relief that was given to people earning below Kshs24,000 per month has been retained. That category, therefore, as they did during the pandemic, will not be taxed. That is an important aspect. If you look at the Tax Laws (Amendment) Bill, Clause 12(d) seeks to delete the word “higher” and substitute it with the word “lower” as far as the minimum tax on gross turn-over is concerned. If you look at the copy of the Bill that you have on Page 1061, the Clause currently says that the installment tax payable by that person under Section 12 is higher than the minimum tax. The amendment seeks to correct that anomaly. You should pay the minimum tax when the installment tax is lower than the minimum tax not when it is higher than the minimum tax. We received a lot of feedback during public participation on the minimum tax on gross turnover. Business representatives turned up, especially those from businesses that are of high turnover but low profit margins. If we tax them on turnover yet they run low margins, it will have an effect on the business standing. If I sell scratch cards, I do a lot, but with a small margin. If the tax is on gross turnover, then you are looking at the issue of taxing the volume I have sold and ignoring the fact that sometimes the margin is very low. Those were some of the issues that were brought forward. The other issue that was brought forward was by businesses where Government regulate prices. Government puts prices that your product is supposed to be sold at. If you are in a petrol station, for example, every 14th of the month, the Energy and Petroleum Regulatory Authority (EPRA) will tell you the price at which you should sell fuel. If there is a minimum tax on your turnover and your price is already regulated, then you are disadvantaged. However, this Bill was trying to clean up the issue of installment tax and minimum tax, which should be higher. That is why we are deleting the word “higher” and saying if your installment tax is lower than the minimum tax, then you should pay the minimum tax."
}