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{
    "id": 1398228,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1398228/?format=api",
    "text_counter": 591,
    "type": "speech",
    "speaker_name": "Kikuyu, UDA",
    "speaker_title": "Hon. Kimani Ichungwa’h",
    "speaker": null,
    "content": " Sorry, I moved on without moving the Second Reading. Hon. Temporary Chairman, I beg to move: THAT, New Section A of Part 1 of the First Schedule be now read a Second Time. Hon. Temporary Chairman, I was speaking about denatured ethanol and making a clarification because I heard many Members during the Second Reading get worried that this has something to do with the manufacture of alcohol. Indeed, denatured ethanol is the one that has been denatured so that it is not fit for human consumption. Most of it is usually used in the manufacturing industry either for cleaning, lighting, or cooking. In the Finance Act of 2023, we introduced exemptions from IDF and the Railway Development Levy on imported denatured ethanol. Therefore, it has become very easy for people to import denatured ethanol from our neighbouring countries, largely disadvantaging our local sugar industry which, through the use of molasses, are producers of ethanol. We effectively removed the economic safety net and competitive advantage that the local manufacturers of denatured ethanol were enjoying. As I have mentioned, these are mostly sugar factories and millers who are now struggling to compete with cheap imports of denatured ethanol. Therefore, to protect them, we propose to delete Paragraph 138 of Section A of Part 1 of the First Schedule of the VAT Act to ensure that locally manufactured denatured ethanol, not just ethanol I must emphasize, is able to compete with imported denatured ethanol as both will be compelled to pay VAT onthe product. This will also enhance our collection of VAT. I beg to move."
}