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{
    "id": 1079482,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1079482/?format=api",
    "text_counter": 180,
    "type": "speech",
    "speaker_name": "Rongai, KANU",
    "speaker_title": "Hon. Kipruto Moi",
    "speaker": {
        "id": 2689,
        "legal_name": "Kipruto Moi",
        "slug": "kipruto-moi"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker for the opportunity to make my remarks on the Finance Bill, an annual event that is anchored in the Public Finance Management Act of 2012. Moreover, this Act gives the CS for the National Treasury the mandate to present to Parliament the policy statement and the Finance Bill. The Finance Bill proposes to amend various legislations in the Income Tax Act, the Value Added Tax, the Excise Duty Act and the Tax Procedures Act. Out of this Finance Bill 2021, there are positive issues arising. In Clause 2, we have the introduction of the infrastructure bond. This bond will enable the Government to raise funds to build roads, bridges and railway lines. That will fast-track the issues of development in the infrastructure department. The Bill also expands the definition of “civil works”. Therefore, if you are an investor who builds things like railway lines or water infrastructure, communication and electrical poles, pylons and other electrical supply works, security walls and fencing, that definition will allow their investments to reap some benefits. This is because there will be investment allowances on those issues. The Bill also introduces relief to individuals who make contributions to the NHIF and also expands the tax rebate list to include employees who engage apprentices from vocational and technical institutions. These are the positive issues of this Bill. In addition, the Bill also decided to avoid double taxation of Excise Duty on internet data. It has streamlined that so that the cost of providing internet services is reduced. On the issue of the capital markets, there is a tribunal created to ensure that cases of appeal are determined within 90 days. Therefore, that is good both for the Authority and the investor. Since there are some positives in this Finance Bill, there are also negatives to it. These negatives include duties on motorcycles as my colleagues have stated and removing that flat rate of Kshs11,000 per bike to 15 per cent of that excisable value. I believe this will escalate the purchasing price of motorcycles and as we know, Kenya is plagued by high unemployment especially among the youth. In addition, motorcycles provide an alternative avenue for them to seek employment. It will now be a bit difficult and we will plead with the Committee to see whether there could be amendments to that to help the youth. Finally, the Bill also proposes to increase Withholding Tax services provided to non- residents to those involved in the extraction sector mainly mining and petroleum from 5.6 per cent to 10 per cent. However, I think in the current situation where we are even looking for principal investors in Turkana County to extract petroleum, this will increase the cost of operations in those two particular sectors. Otherwise, nasema thank you very much and I support the Bill."
}