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{
    "id": 1511354,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1511354/?format=api",
    "text_counter": 430,
    "type": "speech",
    "speaker_name": "Turkana South, ODM",
    "speaker_title": "Hon. John Namoit",
    "speaker": null,
    "content": " Thank you, Hon. Temporary Speaker, for this opportunity to add my voice to this matter on tax laws. As a member of the Departmental Committee on Finance and National Planning, I took part in public participation on various finance Bills across Western and Nyanza regions. What came out clearly is the need for accountability for the taxes we pay as citizens of Kenya. Hon. Temporary Speaker, Kenyans are ready to pay taxes. However, the Executive and the Legislature must work together. The Legislature must oversee what is being implemented by the Executive. Let me highlight some of the issues that require to be amended. There is something on retirement. This Bill has exempted payments from the pensions and gratuity. For instance, if payment of gratuity is made to an employee, a certain figure which has moved from Ksh240,000 to Ksh360,000 is exempted or tax allowable. I recommend that particular proposal. In addition to that, there are non-taxable benefits that will accrue to an employee. One of them is benefit in kind to an employee. What is tax allowable, in this case, has moved from Ksh36,000 to Ksh60,000, in addition to tax exemptions from employees’ gratuity which I have mentioned. There is also increased meal benefit to an employee right from Ksh48,000 to Ksh60,000 which is a plus. There are also tax benefits. The Finance Bill, 2023, has the Housing Levy which is levied on employees. It is not tax allowable in the current state. However, it is tax allowable in this Bill, including SHIF. I support the amendments in this Bill. We have the matter of Digital Service Tax which has been changed to Significant Economic Presence Tax (SEPT). What is being taxed is the income that accrues which is deemed profit. In this case, it is 10 per cent. The law proposes to tax 30 per cent of the deemed profit. The payment of withholding tax and excise tax has been moved to make sure there is certainty in collection of these taxes. This Bill proposes to change the duration from five working days to the fifth day of the following month that the particular tax accrues. There is also an issue on refund of overpaid taxes. Many taxpayers have overpaid taxes. In this case, there are two options provided by this proposed law. One of the options is to apply for the tax refund. The second option that is provided here is to write off or offset the overpaid tax against future tax liability. Hon. Temporary Speaker, I support these proposed amendments. There are various amendments in this Bill. The Committee will move its amendments tomorrow. Kulipa Ushuruni Kujitegemea . I support the Bill."
}