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{
    "id": 1110897,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1110897/?format=api",
    "text_counter": 537,
    "type": "speech",
    "speaker_name": "Kanduyi, FORD-K",
    "speaker_title": "Hon. Wafula Wamunyinyi",
    "speaker": {
        "id": 291,
        "legal_name": "Athanas Misiko Wafula Wamunyinyi",
        "slug": "athanas-wamunyinyi"
    },
    "content": "Colleagues have mentioned a number of areas which should be considered as we appreciate that this Bill is going to bring order within the sector. It is going to introduce amendments which are geared to ensuring fair play. That both the landlords and tenants have a fair treatment of each other and that each of them is benefiting from the relationship. While the landlord has invested and is providing premises for use, either for residential or for business; the tenant is also benefitting from that investment. Therefore, it should be a two-way relationship that while the tenant benefits, the landlord should also benefit. There is something about VAT. I do not know how this can be calculated in relation to the law that we are deliberating on. This is the question of VAT on rent, where landlords are required to charge VAT on rent that is paid by tenants. There are cases where it is normal and good for taxation to take place and for people to pay taxes so that they are provided with services. However, many of the landlords and sometimes even tenants are on mortgage. If it is owner-occupier, you are paying rent but you are on mortgage. Sometimes, even landlords themselves are servicing a mortgage. Under such circumstances, you do not expect to be making a profit because of the loan obligation and the expectation to service loans which you borrow from commercial banks. Heavy interest rates are applicable and the tenant or landlord has no choice but to comply with this requirement for taxation. So, I think we need to reconsider, perhaps in another forum, because I appreciate that, that is a different Act. As we address this issue of the relationship between tenants and landlords, we must also look at the aspect of fair play to everybody like charging the Value Added Tax in this respect. It is evident that when you are servicing a mortgage, there is no investment unless you are a thief or have been in a place where you can steal money. You can then make money and build without a loan. There is nobody who invests without borrowing. That makes it very difficult for one to start earning immediately after investment. It takes time. Such loans are long-term and it takes time to settle them. I will be talking to colleagues so that we can consider how best to deal with the issue of VAT in this respect where a mortgage is running."
}