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{
    "id": 1201341,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1201341/?format=api",
    "text_counter": 421,
    "type": "speech",
    "speaker_name": "Sen. Abdul Haji",
    "speaker_title": "",
    "speaker": null,
    "content": "My attention has been drawn to two aspects of the President’s Speech. The first one is water, a subject that is dear to me and the people living in Arid and Semi-Arid Lands (ASALs), who are perpetually afflicted by lengthy severe drought like the one we are currently facing. Therefore, I was delighted to hear the President’s intention to increase access to water from the current 60 to 80 per cent. While this plan is well intentioned, we must also proceed with caution to avoid forcing the common mwananchi to pay more per unit for something that is considered a basic human right. This largely relies on how the Government intends to structure the Public Private Partnership (PPP) arrangement as they go about executing their plan. We must be cognizant to the fact that certain PPP arrangements have been flawed and have resulted to unintended consequences. Secondly, I am drawn by the issue raised by the President in regards to his intention to reform the tax model. His intention to review and reform the tax model is commendable. However, the proposal to introduce wealth tax, in my opinion, runs the risk of being counterproductive in growing our economy. In my humble opinion, targeting wealth to widen the tax base is misguided. Wealth is simply accumulated savings which is available for further investments into the economy. The fortunes of the wealthy mainly consist of active business assets that generate jobs and income. Increasing taxes on wealth will not help workers or bring about equality. It will instead undermine productivity and wage growth and might lead to capital flight. Most countries world over have repealed their wealth taxes for a combination of reasons. They realized that it raised very little revenue to start with. It created higher administrative costs, it encouraged tax avoidance and tax evasion, it induced an outflow of wealthy individuals and their money and it also led to double taxation. What that means is that wealthy people will be charged twice, first for earning their income and secondly for retaining it, which in essence is both punitive and discriminatory. If we want to jump-start our economy and create employment, wealth taxation will send the wrong signals to the investors that we currently have and the investors that we so desperately need to attract. The money market is very sensitive. Let us not send the wrong signals to the investors. If the President wants to reform the tax model, I urge him to look at ways to reform it in such a way that it attracts wealthy individuals into the country and their monies and it also attracts them to settle and live in Kenya, so that we can tax them on their income and not on their wealth. Simply put, we should turn Kenya into a safe haven for investors and attract more wealth into the country. Mr. Deputy Speaker, Sir, as I mentioned earlier, I thought the President’s Address on the whole was reasonably impressive. I applaud him for his ambitious plan. He outlined that he will bring this country back on track. I can only hope that the President and his Government will be successful. If they are, it means that the country as a whole becomes more prosperous and the living standards of Kenyans will improve, and that is what matters. I thank you."
}