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{
    "id": 1508257,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1508257/?format=api",
    "text_counter": 57,
    "type": "speech",
    "speaker_name": "South Mugirango, UDA",
    "speaker_title": "Hon. Silvanus Osoro",
    "speaker": null,
    "content": "important for business people and for Hon. Members to understand. If necessary, the Cabinet Secretary can guide the commission on how to proceed or involve the court as provided in subsections 1, 2, and 3. Consequently, under Subsection 4, the Commissioner will be required to publish in the Kenya Gazette, specifying the names of the taxpayers, relevant reasons for the tax abandonment, and the amount of taxes abandoned. That will be the requirement in the KenyaGazette . This will ensure that such information is in the public limelight for scrutiny so that people do not abuse it. Hon. Temporary Speaker, some people know the Cabinet Secretary. They will just manoeuvre their language, get to him or her and then fix themselves to be considered. The gazettement of the list of the names brings it to the limelight for the public to know. You can download the gazette notice, which is a public document, and see the reason and names for the tax abandonment. The immediate question that arises is what safeguards are there to ensure that such a provision is not abused? That is what I have said. In order to address these concerns, this House has woven into these provisions as captured now under Clause 4(37F)(5) of the Bill. That is what the National Assembly will do so that people, as I have said, do not abuse this programme on how they know the Cabinet Secretary and whom you know can connect you with him or her. Indeed, it is not enough for the notice to be published in the gazette. It will be laid before the National Assembly. Just like other statutory instruments in our Statutory Instruments Act, it will have the opportunity to approve or annul the gazette notice. This is the gist of this proposal. The names will be published in the gazette notice. They will also be tabled in this House just like any other statutory instrument. If there is a question of abusing the powers by the Cabinet Secretary, powers that be or the Commissioner, then this House will correct that mess. So, this is an important safeguard. It retains the authority of this House on tax abandonment in ensuring that the provision is exercised with fair judgement and probity. There is nothing that is out of the law. This is in line with Article 95 of the Constitution on our oversight roles. We continue with our oversight responsibilities, in terms of making sure that people do not abuse their powers and mess around with what is supposed to be done. Allow me to also point out that this provision will offer relief to Kenyans in situations where tax recovery is no longer feasible, particularly in cases of financial hardships and other dire instances. There are instances where people are really tied up, but you will still find pressure. People adhere to the law strictly. They do not consider one's dire need or situation at that particular moment. They decide to harass them and make sure that they pay with a lot of consequences. This is the school of thought of law that we believe is extremely strict. As much as it is good for Government to recover the money, it is not right sometimes. This will bring relief with justifiable reasons. We have laid down structures to make sure that the taxes will be collected. Even those who will get relief will have gone through all the channels— from the Commissioner to the Cabinet Secretary, gazettement and then to this House to approve. It is not something that is very easy to get, so that people do not abuse it. Hon. Temporary Speaker, let us also look at the expansion of the scope for withholding VAT. Clause 5 of the Bill proposes to amend Section 42A of the principal Act by deleting Sub- section 1 to subject zero-rated supplies and registered manufacturers, irrespective of their investment levels in the preceding three years from 1st July 2022, to withholding tax. Thereby, it deletes the current provision that exempts those who invested at least Ksh3 billion three years before 1st July 2022. Let us look at it this way. What does the current law provide on that? The current law provides that zero-rated supplies and registered manufacturers who invested at least Ksh3 billion three years before 1st July 2022 are exempted from withholding tax. The House might also take note that the provision is a clean up, since Sub-section 1 of Section 42A of the"
}