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{
    "id": 1442023,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1442023/?format=api",
    "text_counter": 121,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": "therefore, stand a risk of public officers buying houses or factories using taxpayers' money which will not be subject to tax. The best way would have been to treat public officers the same as private officers. If we allow private officers to be exempted from tax on payments made to them for assets, you might find them being paid in terms of assets just for tax planning and tax avoidance. Clause 8 proposes to repeal the digital service tax and replace it with a significant economic presence tax a rate of 30 per cent on 20 per cent deemed profit. This committee acknowledges that digital service providers typically enjoy a higher profit margin due to lower production costs compared to companies with physical presence. Therefore, the adjustment aims to align the deemed profit closely with what will be expected in those companies if they face similar cost structures. This is a revenue enhancement measure to ensure that digital service providers pay their fair share of tax. Additionally, and notably, the Committee proposes amending this Clause to include a gradual increase in the rate from 1.5 per cent to 3 per cent and not from 1.5 per cent to 6 per cent as proposed in the Bill. This is to ensure there is swift implementation of this adjustment. This has been one of the most confusing Clauses to the members of the public. This tax is not on digital content creators. This tax is for applications like Uber Eats and Jumia. It is imposed on the owners of the platform and not on the consumers or the people making those deliveries. This has been endorsed by the best practice rule of the Organisation for Economic Cooperation and Development (OECD) countries to have uniformity globally on taxation around the digital market place."
}