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"content": "Hon. Temporary Deputy Speaker, I have already talked about VAT refund claims causing a complication and, therefore, necessitating the efforts to ensure simplicity. We must have a system where the Government can raise money and target the poor. When we spoke to the professionals, they told us that it is not even right for the Government to use a tax system to target the poor. Even if we are to say that we are zero-rating a commodity today, the Government does not have control over the other factors of production to ensure that the benefits that will accrue from zero-rating will reach the targeted persons. Therefore, there was a general consensus among the practitioners that we use an expenditure system, meaning that we collect revenue and then target a specific category of people, so that the tax system is not abused. Therefore, this Bill will enhance revenue collection by the Government and enable it to respond to specific sectors that require immediate attention. Another important administrative issue being addressed is that, for the first time, the proposed law says that the Commissioner can utilise ICT to simplify the process. This means people will no longer have to queue at Times Towers or at any other KRA office countrywide to file their tax returns at the end of each financial year. If you pass near KRA premises at the end of each financial year, you will see long queues of people trying to comply with the tax law. Of course, Kenyans are used to last-minute rush. This Bill makes provision for the Commissioner to operate a system of information technology to enable taxpayers to file their tax returns from their offices or even through their mobile phones. People will no longer have to queue or spend money trying to comply with the tax laws. There were, I think, three or four rates. One of them was a standard rate which was 16 per cent and there was another one of 12 per cent applying to some sectors. There was zero-rating and also the exemption one. This Bill actually removes one which was actually part of the complication. Now there is a standard rate of 16 per cent, zero-rating and exemption. When my Committee met with the various stakeholders, I must report to the House that there was overall consensus that the principle behind this new Bill is good. Therefore, I want this House to note that we have spoken to the Kenya Private Sector Alliance (KEPSA), the Institute of Certified Public Accountants, Kenya Airways, the tourist operators, COFEC--- There is an NGO that organized a meeting on this Bill. They had a right to do so. They, in fact, held a demonstration outside here and they brought ugali with them. They said that this Bill will make the price of ugali increase. When they came outside there, they looked for me. They told me, âHow can you listen to one side of the divide?â I managed to meet their chairperson. If you look at the Report which I tabled a while ago on this Bill, that group of consumers raised issues that we are going to consider. We are in agreement that generally--- I want to state it clearly that we are considering that in the Third Reading. We are going to exempt the most basic items like unga, bread, milk and so on. There is a great request from our ladies that we consider the sanitary towels. We will consider that regarding our school girls. However, I must say that the ones I have mentioned, including sugar, we are almost in agreement. I want to urge all those who have issues that if we agree, we will exempt unga . This Bill should be passed so that we benefit from it. I know a small section of the Bill might ruin the whole thing. My Committee is listening and it will consider a lot of these things. Before the Third Reading we will have agreed as a Committee on the amendments that we need to bring, so that this Bill captures the public interest and views. If you look at the Report of the Committee, we have put all the proposals from the quarters so that you know that we have, indeed, heard them. We will consider and crystallize some of those amendments to be included in this Bill."
}