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{
"id": 1554330,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1554330/?format=api",
"text_counter": 184,
"type": "speech",
"speaker_name": "Molo, UDA",
"speaker_title": "Hon. Kuria Kimani",
"speaker": null,
"content": "out units, while 1,000 are for expanding the grid and connecting new customers. With the increased cost burden brought about by the amendment, fewer transformers can be procured within the current budgetary and cash flow constraints. This will likely result in delays in replacing faulty transformers, extended outages, increased insecurity, reduced economic activity and slower customer connections, especially in areas where a new transformer is a prerequisite. It is, therefore, evident that while the amendments introduced in the Tax Laws (Amendment) Act 2024 were well-intentioned and aimed at promoting local manufacturing, they have unfortunately resulted in unintended adverse outcomes. These include increased costs, operational challenges for utility providers and a negative impact on service delivery. It is imperative that we reconsider the application of excise duty on transformers to strike a balanced and effective approach. Such a review is critical in aligning the Government’s broader development agenda, particularly the Last Mile Connectivity. This flagship initiative seeks to expand electricity access to low-income households and rural communities by connecting those located within 600 meters of existing transformers. The success of this programme hinges on the availability and affordability of transformers. Therefore, the current taxation framework needs to be re-evaluated to ensure that it supports, rather than hinders, the realisation of this important national objective. Further, the Committee proposed an amendment to the First Schedule of the Excise Duty Act to correct an error in the classification of glass tariffs, especially float and safety glass. The current Act incorrectly references tariff code 7007 for imported float glass, whereas the correct classification under the Harmonized System is 7005. This miscalculation has led to confusion and unintended consequences, particularly affecting the transportation sector, which depends on accurately classified safety glass for compliance and public safety. Again, on this particular matter of float glass, the intended code was supposed to be 7007 for imported float glass. However, this House erroneously classified that code as 7005. Therefore, one of the additional amendments we will seek to do during the Committee of the whole House is to correct that unintended anomaly. The types of glass that you see around are of different kinds. The glass that is used in banks has safety features. We have glass used in motor vehicles and glass used in houses. They are all different kinds of glass. This classification will ensure that this House and the country prioritise support for local manufacturing rather than importation. No country has grown by being a supermarket; that is the unfortunate truth. We must all agree that as a country, we cannot grow if we become a supermarket of importation. The way to grow is to ensure that we support our local manufacturing by being very deliberate in promoting local manufacturing and making imported products that can be manufactured locally more expensive thus spurring economic growth. We have seen President Trump's administration slap tariffs on imported products. It is because they want to build America and ensure American companies succeed. We must do the same as a country. We must be selfish as a country and say, “Kenya first”. The only way to achieve that is through the imposition of tariffs on imported finished products, making importation of raw materials easy, manufacturing here, and making sure that we buy Kenya and build Kenya. President Ruto once said during the launch of a factory in West Pokot that a locally made Datsun is better than an imported Rolls-Royce, and I share that view. Our locally manufactured products may not be the best, but if we support them, we shall get there. In the Finance Act of 2022, this honourable House introduced excise duty on imported furniture. There was much debate, and some people said a lot of furniture cannot be produced locally. However, what have we achieved as a result? If you go to Ngong Road, Kiambu Road, the bypass, and my constituency, Molo, many people make furniture locally. We only imagine that expensive \"recliner seats\" can only be imported from China and Turkey. We now have The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}