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"id": 191947,
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"speaker_name": "Mr. Okemo",
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"legal_name": "Chrysanthus Barnabas Okemo",
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"content": "Thank you very much, indeed, Mr. Temporary Deputy Chairman, Sir. I would like to take this opportunity to second the Motion. I think what should come out clearly is the fact that, these are provisional taxation measures. They are provisional in the sense that they are actually all contained in the Finance Bill. When the Finance Bill is ultimately discussed in full, we will be looking at exactly the same issues. But for purposes of the Government to run smoothly and raise revenue, this provision under the law is provided for. Mr. Temporary Deputy Chairman, Sir, I would like to commend the Minister for a very good job in terms of revenue collection. If you look at the way ordinary revenue has risen in the recent years, it has been on an upward trend. This is probably because of a combination of several factors. However, I think that the main one has been improvement in tax collection, which is now efficient. I think that is an effort that needs to be commended. We need to commend the Kenya Revenue Authority (KRA), although in the process there have also been overzealous taxation officers who have tended to harass Kenyans in the process of collecting taxes. Be that as it may, I believe that when we are financing the Budget, ordinary revenue is the biggest component. Then, of course, we have other things like Appropriations-in-Aid, Grants- in-Aid and other sources of revenue. What I would like to bring to the attention of the Minister is that, it would be useful for this House to know the non-Budget support financing that he gets. This is because very large amounts of money come in, not as general Budget support or sectoral Budget support, but as project or programme aid. Some of it comes in the form of technical aid. These are quite large sums of money and it will be useful for Members of Parliament to know the quantum; how big is this amount of money? It all goes towards general development of the economy. If you just talk of Budget support, that is only a small portion of either technical assistance or the money we get from donors. Mr. Temporary Deputy Chairman, Sir, I am a bit concerned with the issue of certain integration measures which when implemented, do not achieve the expected results. Here, I am speaking specifically about reduction in duties or VAT. These are supposed to translate into lower prices or lower costs of doing business. I would like the Minister, who is quite innovative, to apply his mind to how we can ensure that when taxes go down, this should translate into lower prices of 1456 PARLIAMENTARY DEBATES June 26, 2008 food. For example, we are now zero-rating VAT on bread and maize flour. The problem is that when this advantage is realised by the business people, they actually pocket the entire benefits and very little of it goes to mwananchi . So, the Minister may have very good intentions, but the effects may not be felt by the target groups that you intend to assist in the taxation measures. The Government has really to think of a way because we are operating under a liberalised price regime. It, therefore, becomes very difficult on one hand to say that you are free to charge what you want, and on the other to say that if you have taken certain measures, the same be implemented in a manner that benefits the consumers or the common mwananchi . I would also briefly like to mention something about the Budget Committee of Parliament and the legislation that has been pending for a very long time, partly because the Minister for Finance has not been very supportive. I do not know why, because, when I was having a small discussion with him, I told him that this would make his work so easy. This is because once you consult from the word go, and particularly consult Parliament, their input is in whatever he will come to present here. When he presents the Budget here, it will be a matter of formality. We will not take him to task the way we do. Mostly we do that because we are in the dark and we only get to know what the Minister has done when we reach here. So, I would really urge the Minister for Finance to ensure that the House Business Committee brings forward the Fiscal Analysis and Appropriations Bill which is supposed to bring into effect the Fiscal Management and Appropriations Committee, so that it can begin to function. Already, Parliament has some kind of structure. We have a Secretariat which now deals with analysis of all these issues and so on. This is very useful to Members of Parliament because they need to understand what the Executive arm of Government is doing. That way, they will be able to play their oversight role effectively. If you do not understand what is before you, how can you be effective in oversight? I would like to appeal to the Minister, that he should now, in fact, take up the role in ensuring that the Fiscal Analysis and Appropriations Bill which has not seen the light of day comes to this House so that we pass it and activate the Budget Committee which I think is raring to go. In so doing, you will find them very useful partners in the exercise of Budget making. Mr. Temporary Deputy Chairman, Sir, in conclusion, I would like to urge the Minister to reconsider this issue of alcohol. I see that there are additional taxes that are being imposed on beers and some of the spirits. I think this was a subject of a very spirited discussion between himself and the Departmental Committee on Finance, Planning and Trade. I would like to convince him, hopefully here, or if not, elsewhere, that there is a sector of our community that we call the low income earners. These people do not go to consume chang'aa because they like it in preference to beer or cheap spirits. They do so because they cannot afford it. So, why do we want to condemn them to consuming illegal brew? These people would also like to drink decent alcohol that is not harmful to their health. They consume chang'aa because their income cannot support the prices that are charged for beer. So, I would like the Minister to consider, particularly the cheaper brands of beer. They should be made cheaper or the taxes on them either removed or reduced considerably. This should also apply on cheap spirits such as some of the Keroche brands. This alcohol is healthy for consumption and people who consume it can enjoy it like the rest of us who are in higher income brackets. With those remarks, I beg to second."
}