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{
    "id": 246531,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/246531/?format=api",
    "text_counter": 166,
    "type": "speech",
    "speaker_name": "Ms. Karua",
    "speaker_title": "The Minister for Justice and Constitutional Affairs",
    "speaker": {
        "id": 166,
        "legal_name": "Martha Wangari Karua",
        "slug": "martha-karua"
    },
    "content": " Thank you, Mr. Temporary Deputy Speaker, Sir, for giving me this opportunity to support this Motion. I am saddened by what I have just heard, and it suggests that there is a basic lack of understanding of the term \"zero-rating\". As hon. Members, we should seek to be informed so that as we make our contributions, we do not make inflammatory and incorrect statements that can cause people to think that the Government is marginalizing them. Mr. Temporary Deputy Speaker, Sir, I thought that any person representing a constituency where wheat is grown would be joyous about the zero-rating of wheat. But to be happy about it, you have to understand what it means for a crop to be zero-rated. I have been taking lessons because I did not understand the concept before. Zero-rating means that the crop will no longer be subject to any taxation. It is not that it had any taxes surrounding it, but the packaging materials and the electricity the miller uses were all taxable and the cost is normally passed on to the consumer. Zero-rating means that the petrol, diesel or electricity used to mill the wheat, the packaging materials or any other input is tax deductible and the miller will be able to claim that refund from the tax. It does not mean that if Egypt is exporting wheat into Kenya, they will not be taxed. Import Duty still remains. Zero-rating is a protection for the local farmers and manufacturers. Other crops were zero rated last year and the zero-rating of wheat is expected to make that packet of flour cheaper for the consumer. How then can that marginalize the people? Mr. Temporary Deputy Speaker, Sir, let us seek to be informed as we contribute. I have to confess that I have had to take lessons about zero-rating, and I think it is important that we understand these terminologies so that we do not start to complain where there is no need to complain and where something is for our benefit. I have heard complaints about the fuel levy where the road licences for vehicles have been abolished and a levy has been introduced on petrol to enable us to repair our dilapidated infrastructure and build new roads. We cannot have our cake and eat it. If we need to develop our infrastructure, can we have suggestions on who else we would have taxed other than motorists? It is a fact that motorists are using more money to maintain their vehicles because of driving on un- motorable roads. Better roads mean that we will spend less money on maintenance and an easier time for the motorists. It means an easier time for motorists and those who use public vehicles, because the cost of running a public service vehicle is always passed on to the consumer. When we cry about this levy, which will help us to raise Kshs5 billion, which will be added on to the money for maintenance and building of new roads, how then can we ask for better infrastructure? We cannot have our cake and eat it. The money for developing Kenya will come from Kenyans. We have to have taxation measures to support the development work that we are doing. The question is whom to target. I do not think that the introduction of this levy is against the 1450 PARLIAMENTARY DEBATES June 20, 2006 common person. After all, when the roads are bad, the motorists and those who own public service vehicles ultimately pass on that cost to the very consumer, who may be even unable to get to the market or to the dispensary or to his place of work. I think we should take a little bit more time on interrogating and understanding the Budget so that we can make meaningful contribution which then the Minister can respond to, and act on in another year when doing his taxation measures."
}