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{
    "id": 305008,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/305008/?format=api",
    "text_counter": 561,
    "type": "other",
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    "content": "been exempted by the Constitution or Act of Parliament have been cushioned until their term expires. If it is Members of Parliament, it will be until their term expires. If it is other constitutional measures, it will be by increasing their basic salary, so that they end up with the same tax. Mr. Temporary Deputy Speaker, Sir, under the Income Tax, I have proposed, among other measures, the following to ensure efficiency, fairness and also align the income tax to the Constitution:- 1. An amendment to align taxation of non-resident taxpayers who engage in the business of transmission of messages with that of non-resident taxpayers who engage in other business and those based in Kenya. That has been supported by the professionals. 2. An amendment to empower the Minister responsible for Finance to make rules for purposes of administering exemption of trusts, churches and Non-Governmental Organizations (NGOs). Again, contrary to what was reported in the media, I did not impose any taxation on churches. I was also accused of doing that. All we are saying is that the rules should provide for separation of the charitable activities of churches, NGOs and other trusts and their commercial business. That is all that the rules will provide. Mr. Temporary Deputy Speaker, Sir, if you are a charitable trust, church or an NGO and you engage in commercial activities, then, surely, you should pay tax on the profit from the commercial enterprise. That is how we become equal. We are aware of some churches with 100 matatus. At the moment, all the income they get is still tax exempt. We are aware of some preachers who demand money for prayers and miracles. Those are commercial activities. If they engage in such activities, then they must pay tax. That is all we are saying. So, I did not impose any new tax on churches. The churches that continue with their charitable activities will continue to be tax exempt. The other amendment is to provide for qualifications of the local committee and tribunal members, and to specify the period within which the Commission is required to file its statement of facts with the local committee. This is important to ensure effective dispute resolution mechanism that will allow faster and efficient settlement of tax disputes."
}