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"id": 245053,
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"speaker_name": "Mr. Muturi",
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"legal_name": "Justin Bedan Njoka Muturi",
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"content": "Thank you, Mr. Chairman, Sir, for giving me this opportunity to make my comments on the Motion before the House. As we talk about taxation, we should look at the issue at hand, which is unconstitutional. Nobody should be subjected to double taxation. A very glaring example of double taxation is that the Minister knows very well that if he visits the Kenya Revenue Authority (KRA), he will find out that there are people who had paid for road licences on probably the same day he read the Budget, two days or two weeks before. Soon after the Budget was read, those people were victims of the increase in the cost of fuel. Mr. Chair, Sir, it is only fair that the Minister addresses the issue and makes some form of compensation to those people who were affected because it is possible to get that information from the KRA. There is a tax principal that, nobody should be subjected to double taxation. Therefore, I want to urge the Minister to examine the issue and avoid the suffering people are going through. Indeed, the Government should not also benefit from where it did not plough. In this case, the Government did not plough in terms of what people paid for road licences. Mr. Chairman, Sir, the Minister said that it is good not to exempt stamp duty on certain considerations. However, stamp duty has been removed on land transactions where schools are to be built or expanded. However, as my colleague has said, I want to tell the Minister that it is important that evidence be sought of such intended development. We know that people can buy land for all manner of reasons, including speculation, and avoid paying duty. Sometimes such duty could run into millions of shillings. I want to address the sugar-cane issue that my friend, Mr. Khamasi, has been talking about. We already published, on 15th June, Legal Notice No.53, The Professional Collection of Taxes and Duties Act, CAP. 415. On page 298, there is an order that was made by the Minister for Agriculture, hon. Kipruto arap Kirwa, dated 15th June, which reads--- This is in connection to avoidance of tax, the Sugar Act, 2001: \"In exercise of powers conferred by Section 18 of the Sugar Act, 2001, the Minister for Agriculture, in consultation with the board, makes the following order-- -\" and proceeds to go ahead and revoke Legal Notice No.385 of 2002, which had indicated how the Sugar Development Levy was to be collected. Mr. Chairman, Sir, I see a situation where the Ministers are taking Kenyans and this House for a ride. We should be demanding the minutes of the Kenya Sugar Board meeting, showing that the Minister for Agriculture ever sat with the board members to make the order. Mr. Chairman, Sir, as it will be demonstrated, there was no such meeting and the Minister cannot produce any evidence of such consultations. This is merely in compliance with the proposals by the Minister for Finance to transfer the sugar development levy from where it was July 4, 2006 PARLIAMENTARY DEBATES 1793 being collected earlier, to the grower and out-grower institutions, which is to be charged by the miller as an agent and each miller should remit the same within the 10th day of the month within which it was levied or collected. Mr. Chairman, Sir, I am aware that in the Legal Notice, the order was to come into effect, just as the Minister for Finance said in his statement, on 1st January, 2007. You can see how things seem to be moving in tandem. The Minister for Finance said that the order would take effect from 1st January, 2007, while the Minister for Agriculture came in conveniently, saying he had consulted the board. We are being taken for a ride. It is unfortunate that at the end of the day, when we are concluding this debate, all we shall be asked to say about the issue is either \"aye\" or \"nay\", notwithstanding the strong sentiments expressed by my colleagues from the sugar-cane growing areas. Between now and 1st January, the Minister for Finance, in consultation with the Minister for Agriculture, should consult widely with hon. Members who come from sugar-cane growing areas and, indeed, with other stakeholders who come from the region, as well as the Kenya Sugar Board, which, in 2001, was enacted and mandated to be the mouthpiece of both the farmer and the miller, all of whom are represented in the board. Mr. Chairman, Sir, I would wish that the Minister consults more and not take up the matter like his colleague, the Minister for Agriculture, who indicated that he had consulted the board. Mr. Chairman, Sir, I want to look into the area of Customs, If you look at the Customs and Excise Act, Cap 472, Laws of Kenya, you will find that there is power given to the Commissioner of Customs and Excise, to compound felonies so that even if you import any goods, whether you are Artur Margaryan or Sargasyan and there is no Criminal Report of Findings (CRF) and no inspection, the Commissioner of Customs can purport to compound a felony that you have brought in uncustomed goods under the Act. When he does that, he does it himself. I want to urge the Minister to consider making an amendment to the Customs and Excise Act, so that the power to compound a felony under that Act is not left to one individual; the Commissioner alone. I know that it happens because I have a lot of knowledge in that area. That is the area where the Government is swindled all the duties due to it because, under that Act, once the Commissioner compounds a felony, he can impose a fine of as little as Kshs5,000. I am saying that because even before I joined politics, I had dealt with such kind of cases in courts. People were brought before me and some of them even pleaded that they dealt with by the Commissioner and fined very little sums. I know that the Government loses a lot of money through that route. All that I am saying is: Let that power be exercised by a collegiate, and not by one person. Mr. Chairman, Sir, I also urge the Minister for Finance, Mr. Kimunya, to also look at the Kenya Ports Authority Act. Again, there are exemptions in that Act which are made by the Managing Director. We all know that I have been dealing with those things in the Public Investments Committee (PIC). That power to give exemptions has been used as an avenue for corruption. That is because that discretional power is exercised by the Managing Director alone. Again, I suggest to the Minister that he looks at it again and propose an amendment so that a group of senior people in the Authority could hear any petitions regarding exemptions. With those few remarks, I beg to support."
}