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{
    "id": 1438671,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1438671/?format=api",
    "text_counter": 159,
    "type": "speech",
    "speaker_name": "Prof. Njuguna Ndung’u",
    "speaker_title": "The Cabinet Secretary for the National Treasury and Economic Planning",
    "speaker": null,
    "content": "The 2024/2025 Financial Year marks the beginning of these reforms through proposed amendments in various tax laws as contained in the Finance Bill 2024. These reforms are part of a wider tax policy reforms that is contained in the Medium Term Revenue Strategy. Shortly, I will provide highlights of these reforms. Additionally, during the East African Community pre-budget consultations held in May 2024, ministers responsible for finance and economic planning in the East African Community region agreed on customs measures that will support and protect industries in the region. The tax measures proposed in the Finance Bill 2024 and the said custom measures are expected to generate an additional Ksh346.7 billion or 1.9 per cent of GDP to the Exchequer in the 2024/2025 Financial Year. Allow me to provide highlights of some of the custom measures agreed during the pre- Budget consultation with the East African Community partner States. The Ministers agreed on a number of measures for enhancing the competitiveness of locally manufactured products by allowing stays of application for the East African Community common external tariff not to change the rates and, where necessary, to adopt higher rates of duty to encourage local production in the East African Community countries. The Ministers also agreed on duty remissions for raw materials and inputs used by local manufacturers to facilitate East African Community domestic production. In order to meet local demands and enhance food security in Kenya on key staple foods, Kenya was granted an extension of the current stay of application to import rice at a duty rate of 35 per cent or US$200 per metric tonne, whichever is higher, for one year, instead of East African Community Common External Tariff rate of 75 per cent, or US$345 per metric tonne, whichever is higher. And also, Kenya was allowed to import wheat at a duty rate of 10 per cent instead of 35 per cent for one year under the East African Community Duty Remission Scheme. Kenya has a strong assembly of electronics industry, including mobile phones. In order to further open up the ICT sector to more investors, Kenya requested for duty remission on inputs for manufacture and assembly of smart telecommunication devices, including mobile phones, laptops and tablets. This request was granted. The local assembly of automobiles continues to facilitate job creation with positive ripple effects in other supportive sectors, especially in the manufacturing of spare parts. In this regard, Kenya continued to develop capacity in the assembly of prime movers, road tractors and trailers to meet both local and regional demand. In order to safeguard this capacity, Kenya was granted a stay of application of East African Common External Tariff rate of 10 per cent to apply a duty rate of 25 per cent for prime movers and 35 per cent for trailers for one year. Further, in order to continue supporting the assembly of motorcycles in the region, East African Community ministers, in this regard, agreed to extend the duty remission on importation of raw materials for the manufacture of parts used in the assembly of motorcycles, including leaf springs and wiring harness. In addition, ministers agreed to extend duty remission for completely knocked down kits for assembly of motorcycles at a rate of 10 per cent. The growth of investment in metal and allied sub-sector has enhanced the capacity to manufacture various iron and steel products in the region. To safeguard the gains in this sub- sector, the ministers agreed to retain the duty rate at 35 per cent with the corresponding specific rates for imported iron and steel products for a further one year. 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."
}