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{
    "id": 1441438,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1441438/?format=api",
    "text_counter": 184,
    "type": "speech",
    "speaker_name": "Kitui Central, WDM",
    "speaker_title": "Hon. (Dr) Makali Mulu",
    "speaker": null,
    "content": "presented their comments to the Departmental Committee on Finance and National Planning. I appreciate them. I thought they would not appear before the Committee this time. This is because, based on the experience last year, the same number of individuals and institutions gave comments, but were never taken on board. So, we must appreciate them. I also thank the Committee for creating time to listen to them and make some efforts to factor in their comments. I have gone through the original Bill, but I cannot understand the thinking behind some of the proposals. I also thank the Committee because they have managed to undo some of them. But because I do not have a lot of time, I will focus on what the Report says. From where I stand, things have been made worse instead of better. I will start with the proposal to increase the Import Declaration Fee (IDF). The presentation by edible oil companies, the Kenya Association of Manufacturers (KAM) and the Kenya National Chamber of Commerce and Industry (KNCCI) proposed that the IDF be maintained. This is because increasing that fee will lead to an increase in the cost of production. Most of our factories and industries depend on imported inputs to produce their outputs. Therefore, the solution was to maintain the fee so that the cost of production does not increase. What does the Committee propose? The Committee has proposed to increase that fee from 2.5 per cent to 3.5 per cent. That automatically means that the cost of inputs that are imported into the country will increase. As a result, the cost of production will also increase. Further, the increase in that cost is transferred to the consumer. That will make our goods uncompetitive in terms of prices. That is why, despite us talking about import protection in the country, people buy imported goods at a cheaper price than those that are produced locally. Those are very critical issues. The second item is the Railway Development Levy. It is now at 1.5 per cent. The edible oil companies proposed that we maintain it. By doing that, we would have saved the cost of oil by about Ksh72 per litre. The proposal of the Committee is that the levy be increased from 1.5 per cent to 2.5 per cent. What does that mean? We are likely to increase the cost of production because that levy will be applied on all imported goods and any goods that are passing through our railway transport system. Again, instead of helping the manufacturing sector, we are making it worse. To make things worse, the last clause of the Report is a new one to increase Fuel Maintenance Levy by Ksh7. Any time you touch fuel in this country, you touch the whole economy. By doing that, you increase the cost of production, which will directly affect Wanjikus and Mwendes of this country. I am sure that the proposed amendments will make this Bill worse. It is a very good ‘candidate’ for being voted against. Hon. Speaker, with those remarks, I submit."
}