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{
"id": 1590440,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590440/?format=api",
"text_counter": 370,
"type": "speech",
"speaker_name": "Kikuyu, UDA",
"speaker_title": "Hon. Kimani Ichung’wah",
"speaker": null,
"content": "I rise to support this Bill in its Second Reading. Hon. Temporary Speaker, before I proceed with my remarks on the Bill, allow me to express my disappointment with the recent shooting incident. I had not seen the video earlier, but I have just watched it. It is unfortunate. As we have said before, our police officers must exercise restraint in the execution of their duties. They must remember that they are dealing with fellow human beings. We must not lose lives or limbs, even during demonstrations. Moving on, let me begin by commending the Committee, led by Hon. Kimani Kuria, and the other 14 Members, including CPA Julius Rutto, who questions whether I am aware that the Committee is professionally constituted. Hon. Julius may not know that I was already a Certified Public Accountant (CPA) when he was still in high school. I qualified as a CPA in 1999, while still a university student, long before graduating from the University of Nairobi. At that time, the Chairman of the Committee must have still been in primary school. Hon. Temporary Speaker, a lot has already been said about this Bill by the Chairman, so I will avoid repetition. However, it is important to underscore a few points. Over the past two years, the Finance Bill has been labelled a tool that punishes Kenyans through over-taxation and worsens their economic conditions. Listening to the Chairman’s presentation reminded me of the events of April last year, when a widespread campaign of disinformation and misinformation took place. This year, a similar campaign began again in April. As the Chairman noted, much negativity has been spread about the Finance Bill. Many Kenyans believe that it is designed to punish them or make them poorer. But I wish to highlight that the Finance Bill is not solely about taxation. It is also a tool for improving the lives of Kenyans. Allow me to illustrate just one provision from the Income Tax Act. For those who have taken the time to read the Report, as the Chairman pointed out, many people comment on the Finance Bill without reading it or seeking an informed interpretation. There is a proposal to increase the tax-free cash benefit, or what is commonly referred to as per diem, paid to employees in both the public and private sectors. The proposed amendment increases the tax- exempt threshold from Ksh2,000 to Ksh10,000 per night. Therefore, those who enjoy per diems when they work outside their station, including Members of Parliament, are only allowed a tax- free amount of up to Ksh2,000. Now you can enjoy a tax-free per diem of up to Ksh10,000. This means that if you are out of your station for 30 days and you are paid Ksh300,000, it will be tax-free. It is a direct benefit to employees and workers in our country. Remember, in our 2024 Bill, which was demonised with disinformation, there was a proposal which we later passed in December. But because Kenyans never paid attention, they never got to know. I have spoken about cash benefits, but regarding non-cash benefits, there are many people who work in factories, in industrial areas, who get non-cash benefits like lunch or free transport and are taxed. Last year, we elevated non-cash benefits from Ksh36,000 to Ksh60,000. Currently, one enjoys up to Ksh60,000, which is equivalent to about Khs5,000 per month. If your employer is facilitating you with company transport or lunch, up to Ksh5,000 a month is tax-free while up to Ksh300,000 or Ksh10,000 a day of per diem, is tax-free. On the Income Tax Act, a tax relief has been introduced on mortgage interest on residential home construction. Again, in our 2024 Bill, we revised a tax deduction on interest paid on purchase of a house from Ksh300,000 to Ksh360,000. That fell with the Finance Bill of 2024. When we did the tax amendment laws in December, to the benefit of Kenyans, we reintroduced that particular provision, and today, Kenyans can enjoy tax reliefs of up to Ksh360,000, up from Ksh300,000, on mortgage interest. That means you do not pay tax or you can claim tax against every Ksh30,000 you pay as interest on your mortgage. I can see Hon. Kwenya nodding because I know he is enjoying a mortgage from the National Assembly that he is paying heavily. Members of Parliament and many other Kenyans who choose to take a mortgage facility to construct their own house 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."
}