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{
    "id": 1061406,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1061406/?format=api",
    "text_counter": 139,
    "type": "speech",
    "speaker_name": "Kipipiri, JP",
    "speaker_title": "Hon. Amos Kimunya",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker. I rise to support the approval by the House of these Regulations and to register my thanks for the Committee in looking at these Regulations. You will note that these Regulations relate to VAT on the digital market place. Members may remember that last year, we created a new taxation regime that now supplies within online shopping, and all that will be taxable. These regulations come into play to ensure that we have a basis for taxing people operating within that space. More importantly, to bring some harmony between local suppliers and people supplying from out there. With COVID-19, one of the things that happened is that most of the people are not going to physically visit shops. People are buying things online. It is not quite clear how VAT taxation is taking place. So, these Regulations come in to help sort out this issue especially for people who are outside the country selling things into Kenya. They do not have a physical presence within Kenya, but Kenyans are purchasing their goods. If you buy similar goods from a person who is a resident in Kenya, there is VAT being paid, but if you buy from Amazon, for example, you do not pay VAT. That brings some inequity in terms of the taxation regime. Hon. Temporary Deputy Speaker, one of the canons of a good tax regime is that it should be equitable and also for purposes of making sure that our people are not disadvantaged by outsiders, including somebody in Uganda, Tanzania or the neighbourhood selling things to Kenya. With that VAT element lacking, it kills our competitiveness. Basically, this is what I see these Regulations doing. The tax started in January, so, the regulations are long overdue. The earlier we pass and approve them, the better, so that we can test and keep refining them. It is a whole new regime that has not been tested before but it is happening, it is a global thing that people have now realized with Covid-19 that physical shops are closing while the digital shops are expanding. You will note, Hon. Temporary Deputy Speaker, that all the companies that have invested heavily on that global, the technology companies, are the only ones which have reported heavy profits across the world, whereas people who have been waiting for customers to actually get in are suffering huge losses. How I wish we could have digital travel, then our own Kenya Airways 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."
}