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{
    "id": 1254405,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1254405/?format=api",
    "text_counter": 158,
    "type": "speech",
    "speaker_name": "Kitui Central, WDM",
    "speaker_title": "Hon. (Dr) Makali Mulu",
    "speaker": null,
    "content": " I want to comment on a number of proposals. There is a proposal to increase VAT from eight to 16 per cent on the Fuel Levy which will have two implications. It will increase the cost of transportation and production. This will be made worse by the fact that in the same Bill, there is a proposal to increase advanced payment on passenger vehicles and commercial vehicles. So, the cost of transport will increase. As a result, even agricultural production will be costly. We are not likely to get the kind of benefits we expect from that increase. The second matter is on the Housing Levy. It is being proposed that we charge 3 per cent of the basic pay. I listened to the Chairman of the Committee who indicated that he would reduce that to 1.5 per cent. However, there are two things which happened which will make things worse. Firstly, the capping of Ksh5,000 has been removed. You only pay 1.5 per cent of your basic pay. Secondly, it is the issue of the money which will be collected. The issue of it being a saving where you can claim it back has also disappeared. If you give out the money, you will not be claiming anything which makes things worse. I have not even spoken for a minute, but I can see… The Housing Levy will make matters worse for Kenyans instead of improving it. Thirdly is the issue of moving many goods from zero-rating to tax exemption. This will increase the cost of the same goods because the component of VAT for the inputs will not be factored in. This Bill is proposing to move many goods from zero-rating to tax exemption which will make things worse for Kenyans. The other thing is Excise Tax. There has been…"
}