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{
    "id": 1442039,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1442039/?format=api",
    "text_counter": 137,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": "It is also important to mention that the responsibility of the payment of this Eco Levy is not on the consumer, but on the manufacturer in that country of origin. This is in line with best practice. It has been introduced in Tanzania and several other countries. Most of these larger manufacturers are more than willing to pay this Eco Levy to make sure that at the end of the life of that product, they are able to collect, reuse or recycle to prevent the eroding of our environment. Clause 47 introduces the Export and Investment Provision Levy to address the trend of decline in exports and increase in imports even for goods manufactured locally. The levy’s objective is to safeguard the local manufacturing sector against unfair trade practices, enhance its competitiveness, enforce a sustainable and inclusive export environment. The Export and Investment Provision Levy is expected to have several impacts on the manufacturing sector. It will support local manufacturing aiming to increase the sectors contribution to GDP from 7 per cent to 20 per cent in 2027, seeks to level the playing field for local manufacturers struggling against cheaper imports and reduce overreliance on foreign goods and services. This levy will generate revenue to facilitate the development of the manufacturing sector and incentivise investments by Micro Small and Medium Enterprises (MSMEs). Based on this, the Committee proposes imposing the Export and Investment Provision Levy on articles such as leather products and imported foot wear, denatured ethyl alcohol, ceramic sinks and wash basins among others. Additionally, the Committee supports the proposal to exempt kraft liner and uncoated kraft paper and billets from the levy. Regarding the motor cycles, the Committee suggest implying the levy only on fully built imported motorcycles. This measure aims to promote local manufacturing, enhance competitiveness and support sustainable economic growth in our great beloved country, Kenya. Clauses 51 and 57 proposes the integration of electronic Tax Invoice Management System (eTIMS) with data management and reporting system. The Committee acknowledges the implementation challenges of eTIMS especially, on our small-scale or subsistence farmers and microfinances. Therefore, the Committee proposes that we exempt these farmers and small businesses with a turnover of less than Kshs1 million from this registration and impose that responsibility on the traders so that they use reverse invoicing. To address this issue, the Committee is guided by the international jurisprudence process called de minimis non curat lex . That, the law does not concern itself with trifle matters that can hinder even tax administration. This is why we are proposing exception of subsistence farmers and MSMEs with a gross turnover of below Kshs1 million from this requirement. This exemption aims to facilitate their participation in the formal business transactions without the burden of electronic invoicing requirements. Furthermore, the Committee suggests to KRA to ensure guidance so that this operationalisation is addressed effectively. These guidelines will provide clarity and ensure smooth implementation while supporting the integration of small-scale farmers and MSMEs into the formal economy. 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."
}