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{
"id": 1508097,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1508097/?format=api",
"text_counter": 67,
"type": "speech",
"speaker_name": "Kikuyu, UDA",
"speaker_title": "Hon. Kimani Ichung’wah",
"speaker": null,
"content": "Report, you will see that the public was very much in support of this Bill, as it addresses challenges or issues raised by the members of the public. These Bills were not just published by the National Treasury or the Leader of the Majority Party. They came from a programme where the National Treasury began by calling for views from the members of the public on the tax regime in Kenya on how they want to be taxed, how they want to be treated by the KRA and other agencies that collect taxes, levies, and fees from them. Therefore, in coming up with this Bill, the National Treasury followed a very consultative process. You remember when the Cabinet Secretary, Hon. John Mbadi, was appointed, he committed to Kenyans that he will work very hard to change the manner in which the National Treasury interacts with Kenyans. I think at the end of August or the beginning of September, the National Treasury called for views from Kenyans. Many Kenyans submitted their views, and those views are reflected in these three Bills. These Bills were not published out of the blue. They are based on the views of the public. Even before we, as the National Assembly, engaged with the public through public participation as required by the Constitution, the National Treasury had already gone to the people, gathered their views, and collated them into three Bills, namely, The Tax Procedures (Amendment) Bill, The Tax Laws (Amendment) Bill, and The Business Laws (Amendment) Bill of 2024. The reports for these Bills were tabled yesterday. Following extensive public participation across at least six counties, and finally in Nairobi at the Kenyatta International Convention Centre (KICC) by the Departmental Committee on Finance and National Planning, the reports were tabled yesterday, and Members are now at liberty to interact with them. Hon. Temporary Speaker, when I speak about these Bills being for the people, I remind you of earlier this year, in June, when we lost several provisions in the Finance Bill. Top among those provisions were progressive proposals that would have helped Kenyans settle their tax liabilities. The Mover of the Bill has gone into great detail addressing some of these issues, from the tax invoice and its requirements, to E-TIMS, and even exempting small-scale farmers and traders from the E-TIMS system. These are the kinds of provisions that will benefit the Kenyan people. Unlike before, where every small-scale farmer or trader was required to be on the E-TIMS system, the new Bill introduces a threshold of Ksh1 million, as the Mover has mentioned, and I do not need to repeat that. Hon. Temporary Speaker, more importantly for me is the issue of tax amnesty. You will remember that we had a tax amnesty expiring on the 30th June this year. Many Kenyans, due to liquidity challenges in the country, with the Exchequer not always being available to the ministries, State departments, or county governments, are owed money by the Government and its agencies. I say millions of our people - from small-scale traders to large contractors. These people have invoiced the Government, including for Value Added Tax (VAT), and are required by the 20th of the following month to settle their VAT liabilities. When they fail to do so, they are penalised, and interest is levied on the unpaid amounts, including VAT. Some of these businesses end their financial years in June, others in April, and some in September, and they are required to pay the Income Tax. However, they have no money because their bills remain unsettled. Some are on the Pending Bills Committee, led by the former Auditor-General Ouko. While some have been cleared, others are still awaiting payment. Despite this, the KRA continues to accrue tax interest and penalties on these businesses. It is these people we must think about as we pass this Bill. This Bill offers them an additional period, from 30th June 2024 to 30th June 2025, to settle their principal tax arrears or liabilities without incurring further penalties or interest, provided Government agencies, both national and county governments, settle their outstanding bills. Hon. Temporary Speaker, you may imagine the penalty is perhaps 10 percent or the interest maybe 2 percent per month, but there are contractors I know in this country who owe"
}