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{
    "id": 1511326,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1511326/?format=api",
    "text_counter": 402,
    "type": "speech",
    "speaker_name": "Kitui Central, WDM",
    "speaker_title": "Hon. (Dr) Makali Mulu",
    "speaker": null,
    "content": " Thank you, Hon. Temporary Speaker, for your consideration. I really appreciate this opportunity. First of all, I thank the Departmental Committee on Finance and National Planning for this Bill. We wanted to know the original and the proposed amendments so that we appreciate what the Committee has done. I want to go on record that, for the first time, we considered the public participation that was conducted on the Bill. We appreciate that. Another important thing to appreciate is that the unsuccessful Finance Bill, 2024 had some good clauses, which were very beneficial to Kenyans. I am happy to inform Kenyans that there are a few things in that Finance Bill which have been brought back in this Bill, which will be beneficial to Kenyans. One of them is increasing the amount deductible in respect to contributions to registered pensions, provident funds, individual retirement funds, or public pension schemes from 240 to 360. That means that Kenyans have been given a relief of Ksh20,000 to Ksh30,000 per month. If you contribute to a pension scheme, you will not pay tax on Ksh30,000 of your taxable income per month. That amount will be tax exempt, which is very important for the country. There is another important matter which I commend the Committee for, because I raised it in the Parliamentary Pensions (Amendment) Bill. We proposed that if one contributes to a post-retirement medical fund, they will get a tax relief of Ksh15,000 per month. Those are good proposals in terms of ensuring that Kenyans have more disposable income. There is another important matter, which is the removal of tax exemptions in relation to the National Housing Development Fund (NHDF). There will be a tax relief on the money that is deducted every month. However, there are few things which might harm the economy even more. I am happy that the taxation of infrastructural and green bonds has been removed from the proposal by the Chairman. Those are some of the alternative sources of funds for development. Therefore, if we tax them, we will make the cost of development more expensive, and we will not develop as a country. Immediately the Chairman said that they propose to drop that tax, I thought that that would be very good for the economy. That is the right direction in terms of growing the economy. The other important matter is the VAT on aircraft. I want to relate that to our tourism sector, which is currently picking up in terms of numbers. If we were to retain the VAT, we would make it very expensive for tourists to visit Kenya. I am happy that the Chairman proposed to drop that proposal. At the end of the day, tourists will have alternatives. As the Leader of the Majority Party said, an elephant in Kenya is the same as an elephant in Tanzania and Uganda. If I can see an elephant in Tanzania at a cheaper rate compared to Kenya, I will automatically be tempted to visit Tanzania. That means that we will reduce the number of tourists coming to our country, who will instead visit our neighbours. That is a very progressive amendment. The issue of the taxes on coal is also very important. As the Leader of the Majority Party said, we need to discuss that matter. Coal is a key input in cement production. Increasing"
}