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{
    "id": 1080258,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1080258/?format=api",
    "text_counter": 407,
    "type": "speech",
    "speaker_name": "Kipipiri, JP",
    "speaker_title": "Hon. Amos Kimunya",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": " I would like the Chair to bring an amendment. The rationale for bringing the insurance business in is because people in insurance business work on commissions. So, they are brokers and hence if you tax at the level of gross turnover then the person is being paid 3 per cent of that gross turnover; you charge one per cent effectively, they are paying tax at 33 per cent which is the same thing with distributors of fast moving goods who are charged on gross turnover of sales. The income they receive is the commission they receive on the sale. Therefore, it is a very unfair taxation on those manufacturers. I would like to urge the Chair to bring in an amendment now that we are here. Since we are in the Second Reading, in addition to what is in 4B, Section 12D of the Income Tax Act is amended – (a) in subsection (1) by deleting paragraphs (d) and (e); (b) by inserting the following new subsection immediately after subsection (1)- (1A) notwithstanding the provisions of subsection (1), a person shall not pay minimum tax if that person— (a) is engaged in business whose retail price is controlled by the Government; (b) is engaged in insurance business; That we also add “who is engaged in distribution business” because their income is based on a commission and not on the turnover. If that could be done as we close part 4B in the Second Reading before we move to the Third Reading, it would be good. You should guide us whether we do it here or leave it in the amended form. This is so that we cater for that category of people who are being penalised for being distributors and are being taxed on the gross income of their principals rather than the commission they are receiving from distribution on behalf of their principals."
}