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{
    "id": 1346436,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1346436/?format=api",
    "text_counter": 328,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": "If you recall, we received the Finance Bill around April which takes up to 30th June to be approved. The business environment is uncertain during the months of April, May and June of each year. It is not clear what decisions Parliament will adopt in tax proposals made around that time. After it is passed, in July, apart from this time when we only have two amendments that are touching on taxes, we find a Statute Law (Miscellaneous Amendments) Bill coming around September or October. That, again, changes a few tax rates or the interpretation of a tax law. Immediately after that, we again go to the next cycle. Even after the Finance Act is assented to by the President around 1st July, remember the Finance Act is always litigated in court. Therefore, there is another two months of not knowing what the courts will decide. All this time sets a very bad precedent to businesses. It sends wrong messages. Therefore, many businesses are not able to have proper tax planning. They cannot know areas to invest in and how to be tax compliant. Even after these decisions are made, it takes time before the KRA updates the system to reflect the new tax laws. This policy is seeking to address this problem so that we have a predictable tax environment such that if you set up a business in Kenya, you are certain that your tax obligations for the next one or two years are not likely to fundamentally change so that we can ensure that we become marketable as an investment destination of choice in terms of doing business. Hon. Temporary Speaker, the overall objective of this policy is to guide progressive development and administration of Kenya’s tax system. The specific objectives include: 1. Offering policy guidance on collection enforcement and negotiation of taxes. 2. Providing the basis of review and development of tax laws. 3. Providing guidelines to stakeholders, including investors, on tax policy matters. 4. Provide guiding principles for the Kenyan tax system. 5. Providing a legal framework for granting tax incentives and concessions to various sectors of the economy. Some of the things that the Committee recommended for amendment or revision are that the policy should offer solutions to the ailing tax system by promoting equality in tax administration and providing policy guidelines."
}