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{
    "id": 1155866,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1155866/?format=api",
    "text_counter": 189,
    "type": "speech",
    "speaker_name": "Amb. Ukur Yatani",
    "speaker_title": "The Cabinet Secretary, National Treasury and Planning",
    "speaker": null,
    "content": "Hon. Speaker, I now want to highlight the tax policy measures for the Financial Year 2022/2023 Budget, which are contained in the Finance Bill, 2022. I will also highlight custom measures that Kenya will be presenting for consideration by the East African Community (EAC) Ministers responsible for finance and economic affairs in their pre-budget consultation platform in May, 2022. These custom measures will become effective from 1st July, 2022. The proposed measures contained in the Finance Bill 2022, are expected to generate an additional Ksh50.4 billion to the Exchequer for the Financial Year 2022/2023 Budget. As earlier indicated in this Statement, we consulted other partner States in the EAC, and Kenya was allowed to present its Budget Statement earlier than the other partner States. With regard to customs measures, we have evaluated various proposals that we intend to submit for consideration during the EAC pre-budget consultations by the EAC Ministers for Finance, which will be held later in May this year. The measures that will be agreed upon will be communicated through the EAC Gazette and implemented from 1st July this year. These measures are generally meant to promote our manufacturing sector and enhance our exports by making inputs and raw materials used in the manufacture of goods more affordable, hence lowering the cost of production. In addition, some of the measures are aimed at enhancing the competitiveness of locally manufactured goods through protection from unfair competition by imported goods. Some of the custom measures are also geared towards protection of critical sectors of our economy like agriculture from unfair competition occasioned by importation of products that can be produced by our gallant farmers. In cases where local production does not meet our demand, the Government will ensure that the deficit is met in an orderly manner that does not adversely affect our farmers. Hon. Speaker, I now turn to the proposed amendments under the Value Added Tax Act. The outbreak of the COVID-19 pandemic and the ensuing socio-economic implications on Kenyans continue to impose a heavy burden on our health sector. In this regard, I have proposed more incentives to the sector by exempting from VAT plant and machinery for use by manufacturers of pharmaceutical products. The Government has been progressively addressing the cost of health care in the country so as to expand access to quality and affordable health care services. To further reduce the health care cost, I propose to exempt from VAT medical oxygen supplied to registered hospitals, urine bags, adult diapers, artificial breasts, and colostomy or ileostomy bags for medical use."
}