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{
    "id": 466719,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/466719/?format=api",
    "text_counter": 316,
    "type": "speech",
    "speaker_name": "Hon. A.B. Duale",
    "speaker_title": "",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": "On the Customs and Excise Act, the amendments in this Bill seek to introduce a requirement for the Commissioner of Customs to give reasons where he denies an investor the licence of intent to manufacture excise goods. This is where an investor or a company wants to use the licence of another entity. This, perhaps, was not in the previous law. For this one, the Commissioner must give a reason. This Finance Bill also enhances cross-border trade. It touches on the withholding of tax. It creates a situation where both the game and betting tax, or where the winners in a casino must equally pay something to the Exchequer. The Chair did very well. As I said earlier, the Finance Bill is introducing the Railway Development Levy which is payable on all goods imported into the country for home use – the charge is 1.5 per cent. This is meant to build the standard gauge railway network. This is meant to spur growth, ease congestion at the Port of Mombasa and to connect us to our neighboring countries which use our port, railway and roads. This will spur economic growth not only in our country, but also in the East African region. Hon. Temporary Deputy Speaker, on Income Tax, there is exemption of taxation on insurance premium paid by an employer for a group life insurance. If you look at the critical clauses in this Bill from the Committee’s Report – I urge Members to read the Report – Clause 15 deals with payment of taxes before hearing of a tax assessment appeal. I agree with the concern raised by the Committee about the requirement that a taxpayer aggrieved by the reviews of a Commissioner to accept a notice of objection will be required to pay 30 per cent of the disputed tax. I am sure that a relevant amendment will come in place. Clause 16 intends to amend Section 114 of the existing Income Tax by taking away the power to compound offences from the Minister or the Cabinet Secretary, in our case now to the Commissioner. Again, here, the committee is opposed to this change and believes that the power to constitute the committee and deliberations must still remain with the Cabinet Secretary so that he provides the check and balance. Clause 17 makes directors and senior managers of corporations squarely responsible for the payment of unpaid taxes including other penalties upon conviction for tax fraud. I have seen the committee’s observation. They disagree with this; it is for the House to look at it and see there could be an amendment to that. Hon. Temporary Deputy Speaker, Clause 7 seeks to exempt goods and equipment used for sports through an amendment to the old Valued Added Tax Act, Cap.476. I want to thank the Chairman of the Departmental Committee on Finance, Planning and Trade because from the list he has presented of the stakeholders who appeared before him, it looks like they are the key stakeholders within the relevant professional body, for instance, Pricewaterhouse Coopers, the Kenya Bankers Association, the Institute of Certified Public Accountants of Kenya (ICPAK),the Kenya Revenue Authority – this is their baby; and the East African Breweries – they have written a memorandum. In conclusion a certain aspect of the Retirement Benefits Authority has been acted on. I know that when we come to the Committee of the Whole House amendments to the relevant provisions will be done. I did not touch on the Banking Act. I think what I have picked from the Bill on the Banking Act is expanding the definition of an “agency”. Banks can introduce and 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."
}