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{
    "id": 1116835,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1116835/?format=api",
    "text_counter": 207,
    "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": "Ministry of Petroleum gave us evidence that they had written to the National Treasury to request money for stabilisation. When we called on the National Treasury, it said that it did not have the money for stabilisation. So we asked where the Ksh25 billion that was supposed to act for stabilisation went. We were told that Ksh1.6 billion out of that money had been used for stabilisation, Ksh2.2 billion had been given to the Ministry of Energy and Kshs18.1 billion had been given to infrastructure. Already, there is Ksh18 per litre that is meant for infrastructure, for roads — the Roads Maintenance Levy. For the National Treasury to have used Ksh18.1 billion on infrastructure was, definitely, misapplication of the Petroleum Development Levy. When the money was needed for stabilisation, it was not available. We do not want to leave this at the level of lamentation. What the Committee has proposed is to move the Petroleum Development Levy and the purposes for which it is used from Regulation into the Act so that we clearly outline and tie it up and say that these are the purposes for which the Petroleum Development Levy will be used, the circumstances and the purposes. It will no longer be in Regulation. It is going to be in the Act. This is what we have proposed and we have included it in the amendment Bill that we are calling the Petroleum Products Taxes and Levies (Amendment) Bill which is attached to the Report. In addition, and we want to see, even when the levy is applied, a clear and accountable process for application of the levy across the board. There has to be an order of application and accountability on how that levy is applied. I have already mentioned that this House must debate every regulation that relates to taxes and levies. Therefore, in those amendments, we are also proposing an amendment to the Statutory Instruments Act to ensure that any regulation that touches on money, taxes or levies comes to the Floor of this House for debate and approval. The Committee also established that demurrage charges are paid according to the size of a vessel. You will find that most of the vessels that come to this country are long-range vessels of between 80,000 metric tonnes and 159,000 metric tonnes for which, a payment of USD45,000 is paid per day. If you look at the number of days that are sometimes spent by vessels here at our port, there is an urgent need for us to deal with the issues of efficiency and effectiveness at the port. It is because money for every extra day that a ship spends at the port is passed on to the consumer. So, there are two things that are happening and the Committee has also been to Mombasa to see the development of the Kipevu Oil Terminal 2 (KOT2). It will now have capacity to offload four vessels at the same time rather than just one which is what is happening with the current situation. So, one of the key recommendations by the Committee is that completion of that jetty should be fast-tracked. Secondly, we do not want this demurrage to be a matter that is decided just by an individual somewhere. We want this to be part of the formula for calculation of the fuel price. We want it to be limited to a certain number of days beyond which the importer of the oil will have to deal with the issue of demurrage on their own. This needs to be restricted. Hon. Speaker, to the actual issues that were raised in the Petitions, it is important that I mention them and also mention what the Committee spoke to. On the issue of the costs, we have already spoken to it largely. I want to speak to the issue of LPG because there also has been a huge outcry on the issue of LPG. This was also raised in the Petition. Here, the Committee proposes that we reduce the VAT on LPG from 16 per cent to 8 per cent to give relief to the consumers. With the proposal, the prayer, to urgently review relevant laws so as to cause a reduction on retail prices of petroleum and petroleum products, including VAT, the Committee looked at all the taxes and levies. We have made the proposals, as I mentioned earlier, of reduction of VAT from 8 per cent 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."
}