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{
    "id": 482089,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/482089/?format=api",
    "text_counter": 227,
    "type": "speech",
    "speaker_name": "Hon. Nyenze",
    "speaker_title": "",
    "speaker": {
        "id": 1987,
        "legal_name": "Francis Mwanzia Nyenze (Deceased)",
        "slug": "francis-mwanzia-nyenze"
    },
    "content": "Section 40(4) of the same Act states that following the submission of the Finance Bill by the Cabinet Secretary, the relevant Committees of the National Assembly shall introduce a Bill in the National Assembly together with the Report of the Committees on the Bill. I listened to the Cabinet Secretary, Mr. Rotich when he presented the Government Budget Policy highlights. He proposed the following new tax legislation in 2014/2015 fiscal year. The Income Tax Bill: This will amend the current Income Tax Act, Cap.470. The Excise Duty Bill: This will introduce a stand-alone piece of legislation to bring excise duty taxation in line with the leading international practices while simplifying revenue collection and Excise Duty administration. The Tax Procedure Bill: This will require uniform tax, tax administrative procedures for VAT, Excise Duty and Income Tax. The Inland Revenue Agency Bill and the Border Service Bill will create separate agencies of KRA to improve efficiency in revenue collection and management. Hon. Temporary Deputy Speaker, within the oil, gas and mining industry, the Cabinet Secretary has proposed the replacement of the current Withholding Tax system with an Income Tax on assignment of rights bringing this industry’s taxation in line with international tax leading practices. The Cabinet Secretary proposed to amend the current definition of permanent establishment to bring it in line with the Organization for Economic Co-operation and Development (OECD) and UN model convention. These proposals seem to be in line with the changed OECD project with action plan on base erosion and profit shifting action 7 - artificial avoidance of permanent establishment status. From the foregoing, it is clear that comprehensive and far reaching reforms of tax system in Kenya are necessary in order for us to meet the ambitious development targets in Vision 2030 of this financial year. The Kenya Revenue Authority (KRA) has collected over Kshs960 billion in 2013/2014 Financial Year which is close to 99 per cent of the target set by the National Treasury. I am sure that with more serious enforcement, they can collect over Kshs1.5 trillion. It is good when you have someone good at the helm of the KRA like John Njiraini. He has done a good job. I am sure if he has security of tenure in that office, he can continue to do a better job like he has done so far. I also hope in the next financial year that the central Government shall increase financing to counties from the current Kshs226 billion to over Kshs430 billion which is 45 per cent of what the KRA collected last year. If that is done, the friction between the county governments and the national Government will be reduced because currently the counties are not getting enough and this should be looked into."
}