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{
"id": 203587,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/203587/?format=api",
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"type": "speech",
"speaker_name": "Mr. Sungu",
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"speaker": {
"id": 324,
"legal_name": "Gor Eric Sungu",
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"content": "Mr. Temporary Deputy Speaker, Sir, allow me to make some few comments on the Finance Bill, which I believe is one of the most vibrant Bills that this House could be called upon to pass. Mr. Temporary Deputy Speaker, Sir, seconding the Bill, Mzee Nyachae said that there is economic growth. We have been told over and over again about huge percentages in economic growth. I dare say that it is phantom because we know that poverty is existing. We know that the gap between the rich and the poor is ever-increasing. It is increasing with very heavy implications for the people of this country. It has implications on security, social structure, welfare of our people and the very future of this nation. Mr. Temporary Deputy Speaker, Sir, to be specific on the Bill, from the very outset, that is page one on the preliminaries, Clause 1 has several sections. Sections 33, 34 and 36 are deemed to have come into force by 1st July, 2005. I believe that these are fundamental issues. As to whether or not this matter is constitutional, that was raised by the Chairman of the Departmental on Administration of Justice and Legal Affairs. This is now going to be retro-active. But Mr. Temporary Deputy Speaker, Sir, coming to the question of Customs and Excise, Part 11, the amendment to Section 2 reads:- \"(2) Section 2 of the Customs and Excise Act is amended by inserting the following new definition in proper alphabetical sequence- \"services\" means- (a) any supply by way of business that is not a supply of goods and money; or (b) anything which is not a supply of goods, but is done for a consideration 3990 PARLIAMENTARY DEBATES September 18, 2007 (including, if so done, the granting, assignment or surrender of any right)\". Mr. Temporary Deputy Speaker, Sir, I believe that definition is too wide. It will not augur well for the people of this country. Mr. Temporary Deputy Speaker, Sir, Section 3 reads:- \"(3) Section 90 of the Customs and Excise Act is amended by- (a) re-numbering the existing Subsection (2) as Subsection (3); (b) inserting a new Subsection (2) as follows- (2) Notwithstanding the provisions of this Act, no license shall be issued for the manufacture of plastic bags of thirty microns or less\". Mr. Temporary Deputy Speaker, Sir, allow me to agree with the Minister. Plastic bags are an environmental disaster. It is necessary and right that we control it. One of the best ways to do that is to employ tax measures. Mr. Temporary Deputy Speaker, Sir, Section (4) has an amendment to Section 135 of Cap. 472. It reads:- \"4. Section 135 of the Customs and Excise Act is a amended by inserting the following new subsection immediately after subsection (5)- (5A) Notwithstanding the foregoing provisions of this Section, in calculating the quantity of spirits produced at a distillery, the Commissioner may apply such other method as may be prescribed\". Mr. Temporary Deputy Speaker, Sir, this is very vague definition. It is bad in law. It is, perhaps, intended to target specific industries owned by specific individuals. This kind of proposal could be used in a discriminatory manner, particularly against indigenous industries which compete with multi-national companies. Those international companies continue to enjoy very favourable tax waivers. Therefore, I dare say that we will oppose that at the Committee Stage. I hope the Departmental Committee on Finance, Planning and Trade will bring some amendments to that. Mr. Temporary Deputy Speaker, Sir, Section 5 deals with preservation of funds. Section 166C reads:- \"(1) Where the Commissioner has reasonable cause to believe that a person- (a) has manufactured excisable goods on which tax has not been charged; or, (b) has collected duty which has not been accounted for; and, (c) is likely to frustrate the recovery of duty if information of the Commissioner's suspicion under this subsection is disclosed to him, the Commissioner may make an ex-parte application to the High Court---\" Mr. Temporary Deputy Speaker, Sir, I think this is excessive because the current laws, as they are, allow for a lot of actions by the Commissioner, without having to apply these excessive measures. The time given for an application to vary the orders, if any such orders would have been obtained through an ex-parte judgement, is only 15 days. Mr. Temporary Deputy Speaker, Sir, you will agree with me that, that will be too short a time to allow any reasonable Kenyan to obtain justice. Mr. Temporary Deputy Speaker, Sir, on the question of increasing duty on second-hand spares for motor vehicles, while those proposals are intended to discourage importations, it is going to have very adverse effects on the prices of second-hand motor vehicles. That is because many Kenyans now depend on those cars. It is important to, instead, encourage the manufacture or the assembly of local vehicles and spare parts. Mr. Temporary Deputy Speaker, Sir, with respect to the proposals on the change of basis of evaluation for Excise Duty on cigarettes, I would like to say that---"
}