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{
    "id": 1268154,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1268154/?format=api",
    "text_counter": 111,
    "type": "speech",
    "speaker_name": "Kikuyu, UDA",
    "speaker_title": "Hon. Kimani Ichung’wah",
    "speaker": null,
    "content": " Thank you, Hon. Temporary Speaker. I rise to support the Committee’s Report on consideration of the VAT (Electronic, Internet and Digital Market Place Supply) Regulations, 2023. As indicated by the Mover and other Members who have contributed, it is indeed true that VAT has been levied on Kenyans providing services on the digital market place, but foreigners providing similar services are not paying VAT in those services. The principle objective of these regulations is to ensure that even foreigners providing services in this country also pay taxes. It is not fair that we levy VAT to our people in the digital market place, but the foreigners supplying the same services do not pay tax. These regulations are in line with the commitment made to the people of Kenya by the Kenya Kwanza Government; that we shall have tax policies and measures to ensure equity, fairness and certainty in the manner that tax administration is done. These regulations ensure that we do exactly as we promised. A Kenyan supplying goods and services in the digital market place is taxed as a foreigner supplying the same goods and services. The system before was not creating equity between foreigners and Kenyans. A Kenyan cannot supply services in the United States of America (USA), United Kingdom (UK), Europe or the Middle East without paying taxes. Members of Parliament travel quite often to the countries in the West. We know that whatever little thing you do, including shopping online, getting uber services, and hotel services, there is a tax element to it. The tax is collected upfront from your local or international cards. There was no equity before. We are now creating equity by ensuring that just as you pay taxes to access services from other countries, even foreigners who will supply services here pay taxes to the Kenya Revenue Authority (KRA). Two, fairness is one of the principles that the tax administration system has created. These Regulations are creating fairness. There is also certainty that foreigners in and outside the country will be able to know our tax regime and VAT rates. Further, they will be able to know what services are liable to VAT. Therefore, they will be complying with our own tax laws just as they comply with tax laws in their own countries. It is also interesting that many of these companies and corporations that offer Digital Market Place Services, are paying very heavy taxes back in their home countries, including excise duty, but when they come here they do not even pay VAT. This will, indeed, integrate well. It will not just aid in creating fairness, equity, and certainty in the tax administration process, but also ensure that the Kenyan Government is able to tap in new sources of revenue. This is a commitment that the President has made: to be innovative in creating new tax 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."
}