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{
    "id": 1081524,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1081524/?format=api",
    "text_counter": 15,
    "type": "speech",
    "speaker_name": "Hon. Speaker",
    "speaker_title": "",
    "speaker": null,
    "content": "petroleum fuels in East Africa, even way above the prices in landlocked countries whose imported petroleum products traverse through Kenya. The petitioner believes that the abovementioned increase of prices of petroleum fuels could be because of a lacuna in the governance framework for the Petroleum Development Levy Fund Act, 1991. He claims, for instance, that while the Act provides for the establishment of a petroleum development levy Fund and the imposition of a Petroleum Development Levy, the Act does not clearly elaborate the purpose of the Fund, the formula for determination of the levy, and its utilisation. Further, the Act does not contain any provisions for petroleum price stabilisation fund or any other fund in that case, with an objective of stabilising petroleum prices. Additionally, the petitioner claims that even the Petroleum (Pricing) Regulations, 2020 do not encompass proposals for the enforcement of diesel subsidy. Hon. Members, the petitioner avers that following the assent of the Finance Act, 2020, VAT on the supply of liquefied petroleum, gas was revised upwards from a zero rate to a standard rate, effective 1st July 2021. This revision, in his view, will inhibit the uptake of LPG and works against the global commitment by governments to reduce carbon emissions by encouraging poor households to revert to cheaper fuels with high carbon and other greenhouse gases. Hon. Members, it is on account of the foregoing that the petitioner is calling upon this House to review the governance framework for the management of the Petroleum Development Levy Fund, and in particular – (i) Reviews the applicable tax laws to reduce the taxes and levies charged and revokes or halts the intended commencement of the implementation of the 6 per cent VAT on petroleum products from 1st July 2021, with a view to easing the burden on consumers; (ii) Proposes a review of the Value Added Tax on liquefied petroleum gas from the current standard rate to the previous zero rate; (iii) investigates the utilisation of the revenue raised through the Fuel Levy Development Fund with a view to ascertaining whether or not the funds were utilised in accordance with sound financial management procedures; and, (iv) makes any other order it deems fit for the protection of public interest. Hon. Members, having determined that the matters raised in the Petition are well within the authority of this House, pursuant to the provisions of Standing Order 227, the Petition stands committed to the Departmental Committee on Finance and Planning. The Committee is required to consider the Petition and report its findings to the House and the petitioners in accordance with Standing Order 227(2). The Committee may also consider proposing amendments to the tax regime through the Finance Bill, 2021, if it deems appropriate. I thank you, Hon. Members. Hon. Mwadime, you may have the Floor."
}