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{
    "id": 1508301,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1508301/?format=api",
    "text_counter": 101,
    "type": "speech",
    "speaker_name": "Ainamoi, UDA",
    "speaker_title": "Hon. Benjamin Lang’at",
    "speaker": null,
    "content": "During our public participation sessions, some Kenyans suggested that this was an exercise in futility, insinuating that we had already made a decision. However, I want to assure them that their views were indeed captured, including those collected at KICC. We went to Western, Isiolo, and Taita Taveta. Having said that, let me go through the main provisions of the Bill, clause by clause, for the information of the House. Clause 2 of the Bill seeks to amend the Tax Procedures Act to prescribe information to be contained in a tax invoice. The procedures outlined must be clear, and Kenyans should do this within the law. This Clause provides the details required for an electronic tax invoice. Clause 3 proposes an amendment to Section 37E of the Tax Procedures Act, extending the tax amnesty period from 30th June 2024 to 30th June 2025. All the stakeholders welcomed this move. Based on previous experiences from the recent tax amnesty period, the KRA collected slightly over Ksh40 billion. But what is a tax amnesty? It is a provision that waives interest and penalties for individuals who owe taxes, allowing them to pay only the principal amount owed to KRA. Members have debated this here, but this is the final call for those who have not yet paid. Extending the tax amnesty period further would set a precedent, leading others to delay tax payments in anticipation of future extensions. As a Committee, we have agreed that this will be the last year we waive interest and penalties. Therefore, please ensure that you pay your principal taxes. Clause 4 proposes the insertion of a new Section 37F to provide relief for doubt and difficulty in tax recovery—tax abandonment. Sometimes, it is not possible to collect some taxes if the taxpayer has died or relocated to an area without a local agent. We need to establish a clear procedure for when taxes should be abandoned. However, this should be done within some parameters to prevent abuse. Clause 5 of the Bill seeks to amend Section 42A of the principal Act by deleting the existing proviso and inserting a new sub-section. This new provision prescribes a penalty of 10 per cent for persons who withhold taxes but fail to remit. If you are a tax agent appointed by KRA and you are withholding funds that belong to your customers, it is imperative that you remit these funds. Some have argued that this penalty is high; however, it should be even higher, as you are using funds that do not belong to you. As someone mentioned here, give Caesar what belongs to Caesar."
}