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{
    "id": 1079533,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1079533/?format=api",
    "text_counter": 231,
    "type": "speech",
    "speaker_name": "Homa Bay CWR, ODM",
    "speaker_title": "Hon. (Ms.) Gladys Wanga",
    "speaker": {
        "id": 590,
        "legal_name": "Gladys Atieno Nyasuna",
        "slug": "gladys-atieno-nyasuna"
    },
    "content": "off by exemptions that it has given to medicament like medicines, vitamins and ventilators. There is a long list of exemptions that have been given. That knocks off any revenue that is being raised. What is good about this Bill is that it is streamlining tax administration. There is a point in time where even if you try to squeeze people more, it will be like squeezing water from a rock. We can look at the loose ends that we can tie up and the loopholes that we can seal to make sure that we do not lose revenue that we could be collecting in the existing time. This Bill tries to do a lot of tying up of tax administration and tax procedures, so that KRA does not lose revenue that it can otherwise collect. The revenue target for this coming Financial Year is Kshs2.1 trillion. If KRA gets the support it requires, it should be able to surpass that target of Kshs2.1 trillion and collect a lot more. However, Members have said here that we should cut our coat according to our size and seal corruption loopholes because however much money you collect, if you do not spend it prudently at the end of the day it will be like pouring water on a dry crack. It will never fill up. On the other hand, there must be a way of dealing with the issue of corruption. We must spend our money efficiently. Members have spoken strongly and specifically about bread, flour and motorcycles. I want to clarify that on the motorcycle, the National Treasury is trying to move from charging in actual figures. There was an actual figure of Kshs11,000. For example, if you buy a motorcycle right now for Ksh70,000 you will still pay Kshs11,000. Even if you buy it at a different value, you will still pay that standard amount. So, the National Treasury is trying to move that to a percentage so that it is dependent on the value of the motorcycle that one buys. What happened to that proposal is that it was convoluted. The reporting has been understood to be that there will be an additional tax imposed on motorcycles. To clean that up is difficult. The public perception is that there will be an additional tax. If you try to explain that it will not be an additional tax but changing from actual to a percentage, people will not understand that and vendors can take advantage of motorcycle buyers. As soon as this Finance Bill is passed in Parliament, if a vendor increases the price, he will say “ Ni serikali imeweka.” and buyers will be taxed more. That is why the Committee took a position of retaining the status quo until such a time that the matter can be properly explained. Once it is understood, we can proceed with that proposal. If you proceed and the matter has not been properly explained, you will have a problem. Members of this House have been in support of that position. The Committee made some proposals on reducing the number of TVET interns. The Bill proposes 10 interns for one to qualify for the tax rebate. The Committee was trying to propose five so that we can also cover SMEs. Members have spoken and proposed that we retain it at 10 to have more people absorbed rather than having less. If we put the minimum at five, even big companies that can take up to between 15 and 20 people will still take the five and qualify for the tax rebate. The Committee will consider that particular amendment and reverse it as proposed by several Members. The proposal of Members is logical. I have listened also to the Leader of the Majority Party when he spoke to the issue of investment incentives for those who invest outside Mombasa and Nairobi. We set a figure of Ksh10 billion, but from what the Leader of the Majority Party, it actually makes sense to reduce the figure so that we have investors in Kibwezi, Homa Bay, Ainabkoi, Nandi Hills and across the country. They should not just concentrate here in Nairobi. We want to incentivise them so that they move across the country. Perhaps the figure that we proposed is a bit high and we will consider revising it downwards. 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."
}