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{
    "id": 482417,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/482417/?format=api",
    "text_counter": 217,
    "type": "speech",
    "speaker_name": "Hon. Ng’ongo",
    "speaker_title": "",
    "speaker": {
        "id": 110,
        "legal_name": "John Mbadi Ng'ong'o",
        "slug": "john-mbadi"
    },
    "content": "I was just saying that the Committee--- I know my good friend did not move this Bill. But I felt that not enough justice was done to this Bill in terms of moving it; with all due respect to my friend hon. Gaichuhie. He only spoke about two issues on the Bill and he had thirty minutes to move it. This is a technical Bill that required the membership of this House to get a lot more information from the Committee. But I have the following comments to make with regards to the amendments proposed to the Income Tax Act, Cap. 470. First of all, there is Clause 5 of the Bill which proposes to amend Section 5 of the Income Tax Act, Cap. 470 to exclude or exempt expenditure on vacation trips to destinations in Kenya paid by the employer on behalf of an employee. Much as this may sound nice because of the problems that we have in the tourism sector, I have a problem with this proposed amendment. I have two issues. (i) Article 210 of the Constitution prohibits any exemption to any Kenyan from paying tax. Well, I know it talks about state officers, but what was the idea behind the drafters of this Constitution? When you make these amendment blankets, the employers of state officers can equally be exempted from tax when they take vacations to destinations within Kenya. That would completely be unconstitutional in my view. Instead of listening, I can see the Chairman shaking his head. I am sure I am putting the correct perspective of this proposed amendment. Secondly, any tax law - and this is a principle in taxation--- When you are exempting or waving tax, it should target the poor. You will agree with me that those employees, who are financed by employers for vacation, are not small people in organizations. Those are people who are senior in organizations. There is no need to exempt people who can afford to pay tax from paying taxes. This is not going to benefit any ordinary employee of a company or parastatal. To me, this amendment is misplaced. Even though there is a sunset clause to it, it is completely misplaced. (ii) I have an issue with regards to the Capital Gains Tax. Over the years, we have called for the re-introduction of Capital Gains Tax."
}