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{
    "id": 482118,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/482118/?format=api",
    "text_counter": 256,
    "type": "speech",
    "speaker_name": "Hon. Ndiritu",
    "speaker_title": "",
    "speaker": {
        "id": 1539,
        "legal_name": "Samuel Mathenge Ndiritu",
        "slug": "samuel-mathenge-ndiritu"
    },
    "content": "of problems where locally manufactured agricultural implements do not attract taxes. They were zero-rated but some parts that they imported would not attract the zero-rating. They would import parts but when they produce the whole unit that they have manufactured using local labour and materials they would attract a lot of tax. For example, a plough coming from Brazil or China would be exempted or zero-rated and the one that they produce is taxed. It is not exempted from VAT and for that purpose and with the introduction of the 25 per cent tax on imported metal, the parts that they import for their produce are taxed. This makes the equipment very expensive. For that reason, we are facing a closure of a factory that employs between 100 and 150 people. They are saying that they are going to relocate. They will fabricate and manufacture metal in a place like China and then bring them and then they will only employ two to five people as sales persons. This is a great danger that the tax regime needs to look at. Hon. Temporary Deputy Speaker, I would also want to talk about the National Social Security Fund. The retirement package is a great idea. The problem and the greatest question that I have is: Will the money that will be raised sustained? We know it has been suspended for a while but we know the amount that the workers will be paying will be very high. The question is: Is this money going to be safe given the history of NSSF? Very recently we have been reading of scandals amounting to billions of shillings and we know in the past workers’ money has been wrongly used. It is our hope that the Government will do its part in making sure that the taxes or the amount paid will be safe and that it will not be the cash cow for those in authority or those who want to make a quick buck. Hon. Temporary Deputy Speaker, we know how our people are crying and it is only fair that the tax regime looks at the minimum income that can be exempted from tax. That is raise the relief bar so that now we do not only cover--- We know Kshs10,000 or Kshs11,000 these days is nothing. I hope the Committee will look at the amount of relief such that those earning below Kshs20,000 or Kshs25,000 are relieved so that we cushion the very low income earners. Part 3 of the Ninth Schedule talks about mining. Recently, the Mining Bill was in the House. Suddenly, Kenya is realising the great potential that there is in our mining sector. As much as we would wish that we do not overtax so that investors do not keep away from our country, this is where we have a regime that is secretive. Those people will never disclose what exactly they are getting from our place. We know we have talked of royalties and corporate social responsibility but the Government should introduce and cushion people who are in mining areas so that they become beneficiaries of the life time fortune that is in their areas. When these people extract minerals, we know that they need laboratories to identity and verify these minerals. They will tell you that they are taking a sample to their mother company overseas where they will go and will never disclose the actual value. They will tell you they are getting so much gold from so many tonnes of the material they excavate. It is time the Government looked at that and ensures that locals benefit from what comes from their income. Finally, I would like to talk about the farmers. I represent many peasant farmers. There are issues with the inputs that they use in their farms. We know the Government has been doing something on fertilizers, but that is ad hoc . It is not something that is 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."
}