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"id": 1444630,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1444630/?format=api",
"text_counter": 207,
"type": "speech",
"speaker_name": "Molo, UDA",
"speaker_title": "Hon. Kuria Kimani",
"speaker": null,
"content": " Section 12G is a clean up to provide for covered persons. Clause 12H is the one that was providing for 2.5 per cent Motor Vehicle Tax. The Departmental Committee on Finance and National Planning proposed the deletion of this particular Clause. We said it lies in the wrong Act. You cannot amend the Income Tax Act to introduce a Motor Vehicle Tax. Secondly, it is going to be non-progressive. The 2.5 per cent with a threshold of 100,000 would mean that those people who have a motor vehicle of more than Ksh4 million would pay less, in terms of percentage. Also, this would have diverse effects on our insurance sector because most Kenyans take third-party insurance. Therefore, imposing an additional tax on that motor vehicle would be retrogressive and would cripple the insurance sector. Additionally, commercial vehicles already pay an advance tax before they import the vehicle; therefore, that would amount to double taxation. It is also important to mention that out of the 131 Clauses we received for amendments, this was the most popular one. We agreed with the stakeholders that this needs to be deleted. We propose that this Clause be deleted and there be no introduction of motor tax in the Republic of Kenya."
}