Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1079460,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1079460/?format=api",
    "text_counter": 158,
    "type": "speech",
    "speaker_name": "Kitui Rural, CCU",
    "speaker_title": "Hon. David Mboni",
    "speaker": {
        "id": 13388,
        "legal_name": "David Mwalika Mboni",
        "slug": "david-mwalika-mboni-2"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker. I would like to thank the Chairperson, Hon. Gladys Wanga, for good leadership and guiding the Committee to come up with this Bill. I am a Member of that Committee. First, this Bill seeks to amend several tax laws, namely, the Income Tax, Value Added Tax (VAT) and the Excise Duty Act. These amendments are aimed at raising revenue to support Government operations and economy recovery after the COVID-19 Pandemic. However, these proposals are really not raising revenue. The net revenue which is supposed to be raised by these measures is only Kshs1.8 billion. This means that to fund the budget of Kshs3.66 trillion, administration measures are going to be used, so that the Government can raise revenue from other sources. It is important to note that three sectors, namely, manufacturing, finance and banking, and Information, Communication and Technology (ICT), which constitute 13 per cent of the Gross Domestic Product (GDP), contribute 52 per cent of tax revenue. This means that from the tax revenue which we are supposed to raise in the next financial year of Kshs1.7 trillion, these sectors are going to contribute Kshs884 billion. So, it is important for the Government to look for other ways to raise revenue from the remaining sectors which contribute 87 per cent of the GDP. Otherwise, we are going to face a situation whereby there is going to be a lot of tax evasion and avoidance. Some of the sectors and firms, because of the tax measures we have been putting in, are going to shift to other countries. This may make this country lose jobs, incomes and poverty levels may increase as well as reduction in economy growth and revenue may go down. It is important to note that currently, a lot of beer and cigarettes which are consumed along the Kenya-Uganda border come from Uganda. We are losing revenue because of these taxes. This Bill has very important proposals which are going to help the citizens of this country. One of them is tax relief to people who contribute to the National Hospital Insurance Fund. You are all aware that the cost of medicine is very high and the Government policy to achieve universal healthcare is going to be helped by this proposal. 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."
}