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{
    "id": 41855,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/41855/?format=api",
    "text_counter": 235,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "In April, this year the Government reduced excise duty on kerosene by 30 per cent in order to stem the impact of rising fuel prices on households. However, the cost of living has continued to increase due to the rising international oil prices. In order to further cushion Kenyans from the effects of high cost of living and make kerosene prices more affordable to the common mwananchi, we do propose to remove Excise Duty on kerosene all together. Mr. Speaker, Sir, with regard to diesel we did reduce the Excise Duty on diesel by a further 20 per cent and we further propose to retain that reduction at 20 per cent to further cushion our people. Mr. Speaker, Sir, the East African Community Ministers of Finance during their pre-budget consultations of 7th May, 2011, held in Kampala, Uganda, also agreed on a number of measures to cushion the majority of the poor against the high cost of food. First, due to limited local and regional rice production capacity, we have extended stay of the CET application to allow importation of all types of rice at the rate of 35 per cent instead of the 75 per cent for a further period of one year. Secondly, our capacity in the region to produce wheat grain to meet local demand is limited. In order to enable our millers import wheat grain to supplement local production, we are allowing the importation of wheat grain under the duty remission by gazzeted millers at the rate of zero per cent instead of the 10 per cent granted last financial year for a further period of one year. Thirdly, even though maize is produced in our region, the level of production has fallen drastically due to poor weather, occasioning shortages of the basic food stuff. Again the Government does propose to grant remission of duty for a period of six months on maize grain imported by gazetted millers at the duty rate of 10 per cent instead of the 50 per cent as per the EAC CET. We do believe that those measures will go a long way in helping cushion the most vulnerable in our society against rising prices. I now turn to measures to ensure equity and fairness in our tax system. Kenyans are known to be innovative and hard-working. We have recently seen the three-wheel distribution pickups powered by motor cycle engines. There is emerging technology of motorcycle ambulances suitable for use in rural areas just like motor vehicle ambulances which are duty free in the EAC CET. We do propose to remove the import duty on motor cycle ambulances in order to reduce the incidents of home births in our rural areas. I have also noticed that there are some employees who work for more than one employer and will end up getting multiple reliefs. We do propose to amend the PAYE rules to provide that an employee shall only qualify for one personal relief. The Government is concerned about the housing shortage prevailing and would like to address the problem using investment vehicles such as the Real Estate Investment Trusts (REITs). To this end, we do propose to amend the Income Tax Act to exempt REITs from corporation tax in addition to exempting investors who receive dividends from REITs from the payment of withholding tax. It is the obligation of every person to pay his or her fair share of tax. However, it has been noted that some professionals are not paying taxes in accordance with their income. Therefore, we propose to increase the withholding tax in respect of payments made to such professionals from 5 to 10 per cent. The global trend is for the simplification of excise tax systems. Our current excise tax structure for tobacco products has been criticised as being complex, and in order to address this concern, we do propose to harmonise the Excise Duty for cigarettes at"
}