Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1457872,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1457872/?format=api",
    "text_counter": 65,
    "type": "speech",
    "speaker_name": "Kiambaa, UDA",
    "speaker_title": "Hon. Njuguna Kawanjiku",
    "speaker": null,
    "content": "taxes, created an economic advantage for the company, distorted the local markets and threatened the sustainability of the local industry dealing with steel production. As you are aware, the law provides that tax exemptions under the Special Operating Framework Agreement can only be granted to companies incorporated for purposes of undertaking the manufacture of human vaccines and whose capital investment is at least Ksh10 billion. The company is neither a human vaccine manufacturer nor a company whose investment is at least Ksh10 billion. Consequently, due to the illegal grant of tax exemptions, the company is operating at very minimal cost and all other manufacturers are unable to compete with cheap products produced by the company. As a result, there has been outcry in the steel production industry by manufacturers who risk closing business should the unfair competitive advantages in form of tax exemptions conferred to the company continue being in place. Further, the cost of production vis-à-vis the price of products by the company is extremely low compared to all other companies which goes against the competition law. It is alleged that the Government is losing nearly Kshs30 billion annually in unpaid taxes. Noting this comes at a time when the Government is grappling with the hurdle of reduction of tax collection, it is paramount that the allegations made by the industry players are investigated. It also worth noting that the tax exemptions have been granted to the company through various legal notices in exercise of delegated authority. It is on this basis that I seek a Statement from the Chairperson of the Committee on Delegated Legislation and further requests that the Committee does inquire into the matters raised and make the relevant recommendations thereof. In conducting the inquiry, the Committee may investigate and determine: 1. The circumstances under which the tax exemptions on Income Corporate Tax, VAT, ID, IDF and RDL were granted to Blue Nile Rolling Mills Limited. 2. The total value of tax exemptions that have been granted to Blue Nile Rolling Mills Limited so far and the estimated value of the exemptions that will have been granted to the company on the expiry of the agreement. 3. The contents of the agreement between the company and Government, the period for which the company shall enjoy the tax exemptions under the agreement and the implication thereof in terms of loss of public funds. 4. Whether the requirements of the law in granting tax exemptions under Special Operating Framework to the company were complied with and indicate the persons that were responsible for approving the tax exemptions granted to the company. 5. The number of employees employed by the company and the status of compliance with ensuring tax obligations by the company. 6. The number of companies dealing with the manufacture of galvanising wire/ steel production that are currently enjoying tax exemptions and the value of the investments of the company. 7. The status of other existing Special Operating Framework Agreements and their impact on the economy. 8. Any other matter that the Committee may deem appropriate. I also understand that the industry players and other organisations have written to you requesting for the same. That is why we are asking for this Statement so that we know the companies that have been given exceptions to ensure that it is not only one company that enjoys the exemption. I submit."
}