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{
    "id": 1442048,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1442048/?format=api",
    "text_counter": 146,
    "type": "speech",
    "speaker_name": "Ainamoi UDA",
    "speaker_title": "Hon. Benjamin Lang’at",
    "speaker": null,
    "content": "I want to go to the specific issues that were mentioned in the Bill. Kenyans should note that the Bill which was tabled in the House is a proposal. This House has the power to amend or change it. We can amend everything in that proposed Bill. Therefore, Kenyans should not fear. We are here to protect Kenyans and our country. The Bill proposes to amend the Income Tax Act, the VAT Act, the Excise Duty Act and the Miscellaneous Fees and Levy Act. On a more specific issue, the Bill proposes to introduce what we call “Significant Economic Presence Tax” that will target all the international organisations that are mainly doing business within our country through online systems. They make money here and take it to their counties and we are getting less money from them. We must make sure that everyone who does business in the country contributes to our economy and our tax income. Therefore, the Committee supports the introduction of Significant Economic Presence Tax system, so that we make sure that we tax everyone who is doing business in our country and contribute to our economy. The law as established now, gives our companies five years to recover their tax in what we call the “tax foreign exchange rate.” The Bill proposes to reduce that provision from five years to three years. When we considered the opinions of the public, we agreed to move the necessary amendments and maintain the status quo. That means that we did not agree to reduce the number of years. It is good that our companies are given sufficient time to recover their losses. We shall be introducing a recommendation to delete that clause that proposes to reduce recovery of foreign losses and exchange losses from five years to three years. The Bill proposes to reduce what we call “Motor Vehicle Tax.” This was the most contested clause of the Bill. Every presenter who appeared before the Committee was opposed to it. If you read Section 3 of the Income Tax Act, it says that income tax will be charged on the income of individuals and companies. We tried to check whether the motor vehicle tax fits into the income tax definition. Our honest opinion was that it was misplaced. A motor vehicle tax is not even an income; it is like an asset tax. So, if we tax your asset – a car – today, tomorrow we will introduce a land tax and a house tax. We should remain within the law. We, therefore, concluded that these taxes do not fit the definition of income tax. The Committee was unanimous in recommending that we must remove this tax which will make Kenyans suffer. Therefore, I want to inform Kenyans who told us about the motor vehicle tax that we have listened to them and we have proposed to remove it so that we reduce the cost of living in this country. Those who are talking in bad light and lying about this Clause of the Finance Bill should know that we have recommended its removal. So, Kenyans should relax"
}