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{
    "id": 1591210,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1591210/?format=api",
    "text_counter": 196,
    "type": "speech",
    "speaker_name": "Hon. John Mbadi",
    "speaker_title": "The Cabinet Secretary for the National Treasury and Economic Planning",
    "speaker": null,
    "content": "Hon. Speaker, to prevent revenue leakages, strengthen tax administration and promote equity across sectors, the Bill proposes to move some zero-rated goods and services that are consumed locally to exempt status. Further, some of the goods exempted from VAT have multiple uses making it difficult to effectively monitor whether they are finally used for the intended purpose. In this respect, the Bill proposes to amend the VAT Act to remove such exemptions. On Excise Duty, to minimise tax disputes relating to classification of locally produced excisable goods, the Bill proposes an amendment to the Excise Duty Act to clarify that the East African Community Common External Tariff and its classification rules shall apply to all excisable goods, both imported and locally manufactured. To streamline the processing of applications for licenses to manufacture excisable goods by the Commissioner, the Bill proposes to amend the Excise Duty Act to require the Commissioner to provide feedback on the application within 14 working days from the date of receipt of all valid documents. Hon. Speaker, the Excise Duty Act provides for taxation of alcoholic beverages based on pure alcohol content, which increased cost for producers using spirits over 90 per cent alcohol content as raw materials from Ksh356 to about Ksh1,000 per litre. Since undenatured extra neutral alcohol is a key input in the manufacturing of spirituous beverages, the Bill proposes to amend the Excise Duty Act to provide an excise duty rate of Ksh500 per litre for undenatured extra neutral alcohol above 90 per cent strength supplied to licensed spirituous beverage manufacturers. To promote equity and fairness in taxation of excisable services offered through the internet or electronic network, the Bill proposes to amend the Excise Duty Act to bring non- resident persons without a physical presence in Kenya into the tax net when they supply excisable services through these mediums. To avoid double taxation of fees charged by digital lenders, the Bill proposes to amend the definition of \"digital lender\" under the Excise Duty Act to exclude entities licensed under the Banking Act, the Co-operative Societies Act, and the Microfinance Act. Hon. Members, to enhance clarity and consistency in the administration of excise duty legislation, the Bill proposes to amend the Excise Duty Act to clarify that imported plastic products, including plates, self-adhesive plastics, and printed polymers, will be subject to excise duty at 25 per cent of the excisable value or Ksh200 per kilogramme, whichever is higher. Regarding miscellaneous fees and levies, the Export and Investment Promotion Levy on billets and wire rods, which are raw materials in the manufacture of nails, fencing wires, gabions, bolts and nuts, have raised production costs of these products. In this respect, the Bill proposes to amend the Miscellaneous Fees and Levies Act to review the Levy downwards. To promote Nairobi as regional aircraft maintenance hub, while managing tax expenditures, the Bill proposes to amend the Miscellaneous Fee and Levies Act to introduce Import Declaration Fee and Railway Development Levy on small aircrafts and helicopters but retain the exemption on spare parts for all aircrafts. Next is the Tax Procedures Act, 2015."
}