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{
    "id": 1347023,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1347023/?format=api",
    "text_counter": 541,
    "type": "speech",
    "speaker_name": "Kikuyu, UDA",
    "speaker_title": "Hon. Kimani Ichung’wah",
    "speaker": null,
    "content": "Act, we have carried on this conversation on the issues around the cost of living in the National Dialogue Committee discussion. There are those especially in the minority and those not on the Government side who were of the view that it is out of the tax regime that the cost of living in this country has gone up. We were however of a different view. You will see that from the report that we just submitted to the principles of the two coalitions and which we will be tabling before the House, one of the things that those of us who were on the Kenya Kwanza side portended is that the high cost of living is not principally out of our tax regime. The high cost of living is a conglomeration of many factors be it the war in Ukraine and Russia; the war in the Middle East; global challenges with the recession post Corona Virus Disease (COVID-19); the slow recovery of the global economy post COVID-19; or the monetary policy tightening in the United States (US). All these factors have contributed in a big way in escalating the cost of living in our country and in the world, because Kenya is not unique. Hon. Temporary Speaker, a few others in the opposition were telling us, ‘Oh, it is out of taxation’. Up to now, I have heard people saying it is ‘the frequent increases in taxation’. I was just asking the Chairman of the Departmental Committee on Finance and National Planning whether he has introduced another Bill, other than the one he did in July, that people keep talking about increases in taxation every now and then as if this House is legislating on tax every day. This is not the case. As I said, this National Tax Policy will inform a review and a reform of the entire tax regime. I am glad that when the Cabinet Secretary for the National Treasury and Economic Planning appeared before the National Dialogue Committee, he asserted that fact. In fact, in our report, we have agreed with him that we shall give him up to the end of February next year to table before Parliament a reviewed and reformed national tax regime. It will be targeting all our tax instruments and not just dwelling on the Value Added Tax (VAT), fuel or the Housing Levy. I have tremendous respect for judges in the Judiciary, but surprisingly, I heard them saying the Housing Levy is unconstitutional on the basis that it is being levied on people who are salaried. I wondered because we also have Pay As You Earn (PAYE) that is only paid principally by people who are salaried. As I have said, I have tremendous respect for our judges, but if I were a lawyer like you, I would have really wanted to appear before that judge and ask them that if PAYE is taxed on basis of being salaried, and the Housing Levy is also being taxed to those who are salaried, then they should tell us that PAYE is also unconstitutional, if that is the argument."
}