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{
    "id": 1590455,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590455/?format=api",
    "text_counter": 385,
    "type": "speech",
    "speaker_name": "Kitui Rural, WDM",
    "speaker_title": "Hon. David Mwalika",
    "speaker": null,
    "content": " Very well. As a Member of the Departmental Committee and National Planning, I associate myself with the Finance Bill and the amendments proposed by the Committee. Hon. Temporary Speaker, people mistake the Finance Bill as solely a document aimed at raising revenue. However, the Finance Bill encompasses three main components:Firstly, it seeks to raise revenue to finance the budget. Secondly, it introduces incentives to target sectors in order to attract investment. Lastly, it aims to provide tax relief to income earners, thereby increasing their incomes. The current Finance Bill under discussion is one of the fairest we have had since the last Parliament. The last two Finance Bills aimed to raise over Ksh200 billion each; whereas, this one targets only Ksh24 billion, which is quite fair to the economy. This Bill proposes comprehensive tax reforms aimed at improving efficiency and fairness in the tax system. Key among them is to overhaul tax incentives, which have traditionally favoured few sectors in the economy. If you look at what has been happening, some sectors have been really favoured to the extent that we have state capture in this country; but I will talk about that later. The Bill proposes to align these incentives by limiting VAT ratings strictly to exports, with exceptions only for essential and unprocessed goods. Additionally, it proposes to introduce incentives to priority areas like the tea and coffee sectors. Foreign direct investment in this country has been alarmingly low compared to our neighbouring nations. In 2023, our foreign direct investment amounted to US$750 million, whereas Uganda attracted US$2.3 billion and Tanzania received US$1.5 billion. Given that Kenya boasts a significantly large economy, it is concerning to see such limited foreign direct investment. This Bill seeks to encourage foreign direct investment through the Nairobi International Finance Centre. Individuals investing US$3 billion and above will be entitled to a 50 per cent corporate tax relief for ten years, followed by a 20 per cent relief over the subsequent twenty years. This is a commendable initiative, as it will attract individuals who wish to invest in our country and consequently, creating jobs and increasing income and thereby, fostering economic growth. 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."
}