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{
    "id": 404658,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/404658/?format=api",
    "text_counter": 26,
    "type": "speech",
    "speaker_name": "Hon. Gaicuhie",
    "speaker_title": "",
    "speaker": {
        "id": 17,
        "legal_name": "Nelson Ributhi Gaichuhie",
        "slug": "nelson-gaichuhie"
    },
    "content": "Thank you, hon. Temporary Deputy Speaker. You made a ruling that this is the property of the House and I know there are so many other Members who are interested in the same, I wish to continue. On the first point, on whether the categorization and assessment for tax purposes of the Aga Khan Hospital vis a vis other hospitals of the same league is fair and just: Aga Khan Hospital was established in 1958 as Aga Khan Health Services. The institution is a private not-for-profit making institution that provides tertiary and secondary level health care services. In addition, it provides ambulatory care and in-patient services including critical medical care. All surpluses earned by the hospital are ploughed back into development and maintenance. The trustees do not earn a salary or gain from the surplus of the hospital. In 2005, Aga Khan Hospital transitioned into University Hospital. The medical, dental, nursing and education services offered by Aga Khan Hospital University are categorized as exempt services under the First Schedule, part 11 of the VAT Act, 2013. All health services provided falling under the above description qualify for VAT exceptions on services provided. With regard to Income Tax, the hospital has a specific exemption under the First Schedule, Paragraph 10 of the Income Tax Act, Cap. 470, where the Commissioner may grant tax exemption to a public body whose sole purpose is relieve of poverty or distress of the public and for advancement of education. These are not discriminative and are granted to all institutions meeting those criteria. Kenya Revenue Authority is currently reviewing the entire Income Tax exception regime with a view of rationalizing it. Two, if the Hospital has been duly remitting its fair share to the Kenya Revenue Authority: The Aga Khan Health Services has been duly remitting its taxes to the Kenya Revenue Authority in relation to the institution’s tax obligations which are as follows; Pay As You Earn (PAYE), Withholding Tax and Value Added Tax on commercial rent for the Doctors’ Plaza. Three, whether the medical goods and supplies including the equipments imported by the hospital for the last two decades are zero-rated or tax exempt and if yes, for what reasons. The exceptions provided to Aga Khan Development Network have been on provisions in the laws passed by Parliament. With regard to Import Duty, the Aga Khan Development was beneficiary of the exemptions provided for under the Third Schedule, Item 36 of the Customs and Excise Act, Cap. 472. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}