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{
    "id": 482077,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/482077/?format=api",
    "text_counter": 215,
    "type": "speech",
    "speaker_name": "Hon. Gaichuhie",
    "speaker_title": "",
    "speaker": {
        "id": 17,
        "legal_name": "Nelson Ributhi Gaichuhie",
        "slug": "nelson-gaichuhie"
    },
    "content": "coherent extractive industry tax system devoid of needless conflicts, gaps and ambiguities in tax rules and tax administration. A harmonized tax regime has numerous benefits including reduced compliance costs, simplifying the tax audit process; sharply reduced complexity and lower double taxation risk. Hon. Speaker, the Finance Bill does address concerns as published, but the effects of continued use of unsafe alcoholic drinks as I was saying, will actually harm Kenya because many illicit brews that are consumed are not netted in the tax bracket. Therefore, if we can give remission of the 100 per cent to Senator Keg, we shall be able to net some tax; although many Kenyans need to pay taxes. We need to also give some exemptions because we need to save life. The following are the proposed amendments to the schedule:- Amend paragraph 1 by (a) inserting the following new definition in proper alphabetical sequence, for the following words to make the interpretation of terms used in the extractive industry comprehensive: “Abandonment/decommissioning,” this means to the process of dismantling well- head production and transportation facilities and restoration of depleted producing areas in accordance with the licence requirement and/or legislation. We also propose to amend paragraph 7 by inserting the word “prevail” at the end of paragraph 7 (sub-paragraph 2), immediately after the word “Schedule”. The justification of this amendment is to make the sentence complete and provide the intended meaning of the paragraph. Hon. Speaker, I will just briefly go clause by clause and say why we are proposing the amendments. This Bill intends to incorporate natural resource income and net gains derived from farm output as income that shall be subjected to tax. This measure will ensure that the gains from extractive industry are considerably taxed. Amendments to Section 4 will bring light to the recent development in the extractive industry. The country has high likelihood of venturing both upstream, midstream and downstream in the oil and gas operations as opposed to previous periods when there were only down streaming operations. Therefore, this change ensures revenue is realized from such activities. The amendment in Section 5 is meant to mitigate the effects of decreasing number of foreign tourists by encouraging employers and employees to have a one week vacation; although this revenue measure can occasion a loss of Kshs2.4 billion annually. We think the Government policy is in line with promoting local tourism. Amendment to Section 10 incorporates natural resource income as one that is derived or accrued in Kenya and thereof subject to tax. The amendment to Section 15 ensures that taxes deducted on both sides of the Government are well placed and licensed as to the licensee and the contractor. Amendment to Section 16 had been introduced earlier on exemption of expenditure on employees’ vacation trips within the country."
}