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{
    "id": 1438675,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1438675/?format=api",
    "text_counter": 163,
    "type": "speech",
    "speaker_name": "Prof. Njuguna Ndung’u",
    "speaker_title": "The Cabinet Secretary for the National Treasury and Economic Planning",
    "speaker": null,
    "content": "level-playing field and to achieve the intended purpose, I propose to expand the scope of those taxes to include fees charged on internet and social media advertisements. In order to enhance the administrative efficiency in the issuance of excise licenses to persons dealing with excisable goods or services, I have proposed an amendment to provide for issuance of licenses within 14 working days upon receipt of all required valid documents by the commissioner. The Finance Act, 2023 introduced duty on imported eggs, potatoes and onions at the rate of 25 per cent. To promote trade across the East African region, I propose the removal of this Excise Duty on imported eggs, potatoes and onions originating from East African Community partner States, subject to goods meeting the East African Community Rules of Origin. Currently, Excise Duty is 15 per cent on telephone and internet data services, fees charged on money transfer services by banks, fees charged on money transfer by agencies and other financial service providers, and fees charged by cellular phone service providers. I propose to retain the Excise Duty rate of 15 per cent on fees charged on money transfer services by cellular phone service providers to benefit retail electronic payments ecosystem. Hon. Speaker, I will now highlight the proposed amendments to the Tax Procedures Act. Currently, there is no validity period for the agency notices issued for enforcement of collection of unpaid taxes. This gap often leads to tax disputes and delayed revenue collection. To address this, I propose to amend the Tax Procedures Act to provide a one-year validity period for agency notices. In order to align the timelines for claiming VAT refunds in the Tax Procedures Act and VAT Act, I propose to delete the reference on timelines for claiming refunds under the VAT Act so that the applicable timeline is the six months that is provided under the Tax Procedures Act. Currently, registered manufacturers whose value of investment in the preceding three years is at least Ksh3 billion are exempted from withholding VAT. In order, to promote equity and create fairness to all manufacturers, I propose to amend the Tax Procedures Act to remove this exemption and also to clarify that enforcement and collection of taxes will be undertaken where a decision of the Tribunal or Court is in favour of the Commissioner and stay orders have not been obtained against the decision. The 60 days provided to the Commissioner in the Tax Procedures Act to review documents submitted by the taxpayers in support of an objection of tax assessment by the Commissioner are not adequate to ensure comprehensive review. In order to give the Commissioner adequate time, I propose to extend the timeline to object decisions of the Commissioner from 60 days to 90 days. Let me now move to amendments to the Miscellaneous Fees and Levies Act. Last year, a 17.5 per cent Export and Investment Promotion Levy was introduced on imported goods that are also locally produced in adequate quantities. In the Finance Bill, 2024, the list of goods has been expanded and the rate of the Levy reduced to 3 per cent for most of the items, and others to 10 per cent. To facilitate the National Intelligence Service (NIS) to carry out its mandate, I propose to amend the Miscellaneous Fees and Levies Act to exempt NIS from payment of Import Declaration Fee and Railway Development Levy on security equipment and motor vehicles imported or purchased locally for official use. The high production and importation of hazardous goods, particularly electrical and electronic devices, into the country has led to a significant increase in electronic waste (e- waste) in Kenya. This surge in waste production poses a considerable risk to both the environment and human health. In this regard, I propose to introduce Eco-Levy on various products to be payable in line with the Polluter Pays Principle. The Levy will be imposed under the Miscellaneous Fees and Levies Act. I now move to amendments to the Kenya Revenue Authority Act. In order to enhance public knowledge and literacy on tax matters, I propose to amend the Kenya Revenue Authority 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."
}