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{
    "id": 1268087,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1268087/?format=api",
    "text_counter": 44,
    "type": "speech",
    "speaker_name": "Ainabkoi, UDA",
    "speaker_title": "Hon. Samwel Chepkonga",
    "speaker": null,
    "content": " Hon. Speaker, I beg to move the following Motion: THAT, the House adopts the Report of the Committee on Delegated Legislation on its consideration of the Value Added Tax (Electronic, Internet and Digital Market Place Supply) Regulations, 2023 published as Legal Notice No.29 of 2023, laid on the Table of the House on Wednesday, 5th July 2023 and pursuant to the provisions of the Section 67(1) of the Value Added Tax, Act (No. 35 of 2013), approves partly the Value Added Tax (Electronic, Internet and Digital Market Place Supply) Regulations, 2023 published as Legal Notice No.29 of 2023 subject to the Regulation Making Authority, publishing a corrigendum to rectify the error in the provision on offences under Regulation 14. The main objective and purpose of these Regulations is to provide for a legal framework to enable the Government implement the tax measures necessary for the financing of its economic development agenda. Most businesses have migrated from the real world to the digital space. And as a consequence of that, there are too many people who are trading now in the high cloud without landing on land. There has been serious competition between our local businessmen and businessmen from outside this country. Our own businessmen pay Value Added Tax (VAT) on electronic businesses. Unfortunately, those who are doing business from other countries using electronic means have not been paying Value Added Tax yet they have been sending their invoices to their customers in Kenya and avoiding to pay VAT. So, they have unfairly been competing with the businesses in our country. The end result has been that we have had a skewed market in favour of those who operate from outside this country. The increase in the use of the digital space has opened up the Kenyan market to the outside world, and thus allowing the non-residents to supply digital presence in the country. The import of this is that such suppliers have not been paying VAT. This Regulation is, therefore, meant to correct that particular mismatch between the local market and the digital market operating outside this country. The necessity of the Amendment of the VAT Regulation is to ensure non-resident suppliers who account for a large percentage of the digital market space in Kenya must register and account for VAT on supplies made in Kenya. The Committee scrutinised the Regulations in accordance with the Constitution, Interpretations and General Provisions Act (Cap 2), Value Added Tax Act (No.35 of 2013) and the Statutory Instruments Act (No.16 of 2013). The Committee noted that the Value Added Tax Regulations seek to provide for a legal framework to enable the Government implement the tax measures for financing its economic development agenda. The Regulations seek to ensure that the non-resident suppliers who account for a very large part of the business in this particular sector, are registered as vatable in this country. 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."
}