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{
    "id": 1254229,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1254229/?format=api",
    "text_counter": 180,
    "type": "speech",
    "speaker_name": "Prof. Njuguna Ndung’u",
    "speaker_title": "The Cabinet Secretary, National Treasury and Economic Planning",
    "speaker": null,
    "content": "Submission of manual tax information to the Commissioner-General poses administrative challenges and delays decision-making. Therefore, I propose to the National Assembly to amend the Tax Procedures Act 2015 to require the Commissioner-General to provide a data management and reporting system that will allow taxpayers to submit standardised transactional data in real time electronically. Impersonation of KRA officers is an offence under the Penal Code and poses revenue risks. We have witnessed increased cases of impersonation of Kenya Revenue Authority officers. To curb this vice, I propose to the National Assembly to amend the Tax Procedures Act, 2015 to provide for offences and sanctions relating to the impersonation of Kenya Revenue Authority officers. Hon. Speaker, to enhance efficiency in the administration of tax refunds and boost the cash flow of businesses, I propose to the National Assembly to amend the Tax Procedures Act, 2015 to allow taxpayers who over-pay taxes to utilise the over-paid tax to offset both outstanding tax debts and future tax liabilities. In addition, I propose to the National Assembly to amend the Tax Procedures Act, 2015 to provide an additional 30 days for the determination of complex tax cases. This will provide more time for the Commissioner General to complete the audit and investigation process for complex tax refund cases. Further, I propose to the National Assembly to amend the Tax Procedures Act, 2015 to require Kenya Revenue Authority to pay approved refunds within six months. In instances where approved refunds are not paid within this period, I propose to the National Assembly to further amend the Tax Procedures Act, 2015 to automatically offset the approved refunds against outstanding tax liabilities in other tax heads or future tax liabilities. Let me turn to the proposed amendments to the Miscellaneous Fees and Levies Act, 2016. I had earlier stated that the Government is committed to lower the cost of LPG. In addition to removing VAT on LPG, I propose to the National Assembly to remove Import Declaration Fees and Railway Development Levy on LPG. The Kenya Defence Forces (KDF) and the National Police Service (NPS) are exempted from Import Declaration Fees and Railway Development Levy with respect to equipment, machinery and motor vehicles for their official use. However, this does not extend to other goods, such as material supplies for official use. In this regard, I propose to the National Assembly to extend the exemption to all goods purchased or imported for official use by the KDF and the NPS. Hon. Speaker, the aviation sector is critical in supporting tourism and transporting passengers and cargo. Currently, some aircraft and parts of the aircraft are exempt from Import Declaration Fees and Railway Development Levies. To further support this industry, I propose that the National Assembly extend the exemption to cover all aircraft, helicopters, aircraft engines and spare parts. Currently, imported goods are subject to Import Declaration Fee at the rate of 3.5 per cent and Railway Development Levy at the rate of 2 per cent. On the other hand, raw materials and inputs imported by registered manufacturers are subject to a lower rate of 1.5 per cent for both the Import Declaration Fee and Railway Development Levy. Those differentiated rates pose administrative challenges and are avenues for revenue loss. To address those challenges, I propose to the National Assembly to harmonise those rates at 2.5 per cent for Import Declaration Fee and 1.5 per cent for the Railway Development Levy, applicable to all goods imported into the country. I now turn to amendments to Betting Gaming and Lotteries Act Cap 131. Currently, the KRA is yet to enforce tax collection from betting, gaming price competition and lotteries activities due to a lack of an enforcement provision in the Betting Gaming and Lotteries Act. In this regard, I propose to the National Assembly to amend this Act to allow KRA to apply the provisions of the Tax Procedures Act in enforcing tax collection. 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."
}