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"type": "speech",
"speaker_name": "Garissa Township, JP",
"speaker_title": "Hon. Aden Duale",
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"legal_name": "Aden Bare Duale",
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"content": " Thank you, Hon. Temporary Deputy Speaker. This Committee has made a number of recommendations, from reducing petroleum levy to reducing VAT on petroleum products and LPG to reducing the gross margin for oil marketers. In my opinion, this Committee has tried its best to undertake this task within the shortest time possible but I want to raise fundamental issues. The proposed recommendation on reduction of petroleum levy from Ksh5.4 to Ksh2.9 fails to address the question of whether our country needs fuel pump standardisation or subsidisation programme and whether Kenyans should be burdened by that through payment of a petroleum levy. Secondly, this Committee has failed to address how much of the proposed Ksh2.9 of Petroleum Development Levy is for development of petroleum infrastructure and how much is for fuel pump subsidy. That distinction must be made clearly. If we do not do that, we will expose the funds collected to abuse like in the current situation where the National Treasury has used Ksh18 billion meant for development of petroleum infrastructure to pay for roads. On the reduction of VAT on petroleum from Ksh8 to Ksh4, I expected this Committee not to make a cosmetic attempt at addressing taxation of petroleum products. This House expected this Committee to take a bold move and agree with what we did last time – where we said we totally remove VAT on petroleum products. Uganda charges a single tax regime, which is excise duty. You pay Kshs78 in form of levies and taxes for every litre of petrol, diesel and kerosene you buy in this country. You cannot come here and tell us that you can only reduce it to Kshs12. There is no way. When the Bill comes, we will remove VAT and make petroleum products zero-rated. We must go the ways of Uganda, Ethiopia and Tanzania. On the reduction of the gross margin of oil marketing companies from Kshs12 to Kshs9, the Committee’s proposals are punitive on hard working Kenyan businessmen who employ very many people. Why should they pay for it? They invest in the infrastructure of petrol stations. This is not a measure to encourage them. It is a measure which is very punitive. This Committee cannot convince this House that out of the several parameters within the petroleum price calculating 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."
}