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{
    "id": 1077274,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1077274/?format=api",
    "text_counter": 134,
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    "content": "developing a legislation to operationalise Articles 187 and 189 of the Constitution on Transfer of Functions and Cooperation between the national and the county governments. To facilitate performance of the transferred functions by the Nairobi Metropolitan Services, I propose to allocate Kshs27.2 billion comprising of Kshs18.0 billion for Recurrent Expenditure and Kshs9.2 billion for Development Expenditure. To support the county governments’ capacities to enhance their own sources of revenue and reduce over-reliance on the equitable share, the National Treasury rolled out a nationwide capacity building exercise for the county governments on interventions contained in the National Policy to Support Enhancement of County Governments’ Own-Source Revenue. The policy proposes broadening of the revenue bases while enhancing counties revenue administrative capacities. The policy further proposes legal framework to ensure that county governments comply with Article 209(5) of the Constitution of Kenya when formulating their revenue raising measures. In this regard, we re-submitted the County Governments (Revenue Raising Process) Bill, 2020 to this august House in early 2020 for consideration. It is my hope that the Bill will get the necessary priority and approval. Further, the Government, through a multi-agency taskforce, has reviewed existing revenue management systems with a view to deploying one Integrated County Revenue Management System for use by all the 47 county governments. The taskforce has completed its work and made appropriate recommendations for consideration by the two levels of the Government. In order to provide basic services to previously marginalised areas as envisaged under the Constitution of Kenya, the concerned county governments have been allocated Kshs6.8 billion under the Equalisation Fund in the Financial Year 2021/22. Arising from the High Court ruling declaring the Equalisation Fund Guidelines unconstitutional, the National Treasury has developed the Public Finance Management (Equalisation Fund) Regulations, 2021, which is now before this House for consideration and approval. Hon. Speaker, I will now turn to taxation policy measures for the Financial Year 2021/22 Budget. I will begin by highlighting some of the key measures on Custom Duty as agreed during the East African Community (EAC) Partner States Pre-Budget consultations in May, 2021. I will then highlight some of the proposed amendments in the various tax laws relating to tax administration. These amendments are contained in the Finance Bill 2021 that I submitted to this House in April 2021 for consideration and approval. The custom measures agreed by the EAC Partner States and the proposed amendments in the Finance Bill, 2021 are expected to generate an additional Kshs8.7 billion to the Exchequer for the Financial Year 2021/22 Budget. On Custom Duties, during the EAC Pre-Budget meeting, the CSs noted with concern the proliferation of cheap imports into the region and agreed on measures to protect locally manufactured products from unfair competition. The agreed measures under Customs shall become effective from 1st July 2021. Hon. Speaker, to sustain the fight against the COVID-19 Pandemic, EAC prtner States have agreed to extend the duty-free importation window for raw materials and inputs for manufacture of masks, sanitisers, ventilators and personal protective equipment remission for a further one year. Over the years, we have developed sufficient capacity for local manufacturing in the metal and allied subsector. This has generated job opportunities for our youth. However, the local manufacturers in this sub-sector continue to face stiff competition from cheaper imports. In this regard, and in order to continue protecting this sub sector, the EAC partner States agreed that 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."
}