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{
    "id": 1077278,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1077278/?format=api",
    "text_counter": 138,
    "type": "other",
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    "content": "requirements. In order to promote exploration and mining activities in the country, I propose to exempt from VAT goods for exclusive use in geothermal or oil exploration and mining prospecting. To boost Kenya’s effort on green energy, I propose to exempt from VAT equipment for generation of solar and wind energy. To provide a transition clause to allow companies that had already signed power purchase agreements with Government, I propose to amend the Value Added Tax Act, to provide for a transition for the projects that had been signed before April 2020 to enable them continue benefiting from the VAT exemption in respect of taxable goods used in the projects. This transition will expire upon completion of the said projects. In order to entrench the benefit of affordable housing including specialised facilities like student hostels, it is imperative to develop innovative financing alternatives. In this regard, I propose to exempt from VAT asset transfer into the Real Estate Investment Trusts and Asset Backed Securities. This will deepen our capital markets by encouraging investors to participate in Real Estate Investment Trusts. As I turn to the proposed amendments to the Excise Duty Act, the Finance Act 2020 removed Excise Duty on betting. The removal of this tax generated a lot of public debate considering that betting has become widespread in our society resulting in negative social effects. In this regard, I propose to reintroduce Excise Duty on betting at the rate of 20 percent of the amount wagered. Innovations in the tobacco industry have led to introduction of new products such as nicotine pouches. These new products do not fall in the classification of tobacco products existing in the Excise Duty Act and are, therefore, currently not subject to taxation. In this regard, I propose to introduce Excise Duty on products containing nicotine or nicotine substitutes at a specific rate of Kshs5 per gram. This rate of Excise Duty is equivalent to the duty applicable to similar products under the Act. To support the growth of service industry particularly e-commerce, I propose to amend the Excise Duty Act so as to provide a rebate on the Excise Duty paid on internet data by a person who purchases the data in bulk for resale. On the proposals to ease tax administration, Kenya ratified and deposited the Multilateral Convention for Mutual Administrative Assistance in Tax Matters (MAC) with the Global Forum on Transparency and Exchange of Information on Tax Matters in July 2020. This Convention is meant to facilitate automatic exchange of tax information between the Kenya Revenue Authority and other jurisdictions. In this regard, I have proposed amendments to the Tax Procedures Act, 2015 to facilitate the implementation of the convention. The convention will also enhance tax compliance by foreign taxpayers and act as deterrence to tax evasion and illicit financial flows. In addition, I propose to amend the Tax Procedures Act to empower the Kenya Revenue Authority seek intervention of other agencies to facilitate compliance with the provisions of the Digital Service Tax. There are various ways that some unpatriotic individuals are using to evade payment of their tax liabilities. For example, we have noted in our i-tax system perennial non-compliant tax payers, defaulters, payment returns without payment, non-filers, nil filers, credit filers, stop filers and decliners. In addition, there are traders and merchants who are not registered at all for tax purposes. To gather information on tax malpractices, last year we introduced the iWhistle, a platform that enables members of the public to volunteer information. As at end April 2021, the iWhistle platform had received a total of 502 whistles and we thank the public for volunteering useful information. Considering the complexities and changing dynamics on intelligence gathering and to empower the Kenya Revenue Authority curb tax malpractices, I propose to amend the Kenya Revenue Authority Act to increase the maximum reward to a person who provides information leading to the identification of un-assessed taxes from Kshs100,000 to Kshs500,000. Further, I propose to increase the reward to a person who 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."
}