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{
    "id": 1077276,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1077276/?format=api",
    "text_counter": 136,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Our micro, small and medium enterprises (MSME’s) that operate in the Jua Kali Sector have continued to thrive, creating jobs and incomes to millions of families. Of particular interest is the furniture industry that has continued to attract local artisans who have been able to provide high quality products. However, the industry continues to face stiff competition from imported finished products sometimes of low quality. In this regard, the EAC partner States agreed to extend the applicable Import Duty on furniture at the rate of 35 per cent for a further one year. Hon. Speaker, to give impetus to the affordable housing programs and facilitate availability of locally made roofing tiles at affordable prices, EAC partner States agreed to extend, for a further one year, the duty-free window for importing inputs for the manufacture of roofing tiles under the Duty Remission Scheme. I now turn to the proposed amendments to the Income Tax Act. To ensure equity and fairness in taxation, I have proposed to align the Income Tax Act with international best practice through introduction of provisions to prevent tax base erosion and profit shifting as well as restrict treaty benefits to curb tax evasion and avoidance. In this respect, I propose to amend the Income Tax Act to expand the definition of the term “permanent establishment” so as to align the Income Tax Act with the international best practice. The Finance Act, 2020, introduced the Digital Service Tax on income earned through the digital market place. However, the current tax provisions do not cover all traders who use the digital service platform to transact their businesses. In this regard, I propose to expand the scope of the Digital Service Tax to include income derived through internet and electronic network. Further, I propose to amend the Income Tax Act to align the rate of withholding tax on service fees in the extractive industry with that withheld in respect of management and professional services under the same sector. This will remove ambiguity and manipulation that result in leakage of tax revenue through re-characterisation of income. 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."
}