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{
    "id": 556218,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/556218/?format=api",
    "text_counter": 266,
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    "content": "Hon Members are aware, the East African partner States apply different export duty rates for raw hides and skins, thereby encouraging smuggling of those goods. In order to deter those smuggling activities, the Ministers for Finance have agreed to harmonise the export duty rate on hides and skins at 80 per cent of the FOB value or US$0.52 per kilogramme, whichever is higher. The harmonised rate will be implemented during the 2015/2016 Financial Year. Kenya is the sole manufacturer of plastic tubes for packaging tooth paste and cosmetics in the region. In this regard, I have negotiated for an increase in the import duty rate on plastic tubes for packaging toothpaste and cosmetics from 10 per cent to 25 per cent in order to protect our local manufacturers. It is expected that the local manufacturers will increase the production of plastic tubes while, at the same time, maintaining quality. Pasta is a popular foodstuff increasingly being consumed by many families in the region. Surprisingly, that basic food item is not manufactured locally. Therefore, to encourage investors to produce pasta locally and reduce over-dependence on imports, I have provided for importation of semolina, the raw material for making pasta, under the EAC duty remission scheme at a rate of zero per cent instead of 25 per cent for gazetted manufacturers of pasta. The consumption of illicit brew has become a serious social problem in the country. However, there exists potential for the manufacture of safe drinks using locally available agricultural products. This will have the twin benefit of providing safe alcoholic drinks as well as promoting agricultural products for our farmers. In this regard, the proposed Excise Bill grants the Cabinet Secretary for the national Treasury power to grant remission of excise duty in respect of beer or wine made from sorghum, millet, cassava or any other agricultural products, excluding barley that is grown in Kenya. I, therefore, urge our farmers and the beer manufacturers to take advantage of this incentive not only to create wealth, but also to contribute to a healthy nation. Kenya is the leading manufacturer of aluminium milk cans in the region. Currently, imported aluminium milk cans are taxed at 10 per cent. In order to encourage increased local production, we negotiated to import aluminium milk cans at 25 per cent instead of 10 per cent to cushion our local manufacturers against cheap imports. The importance of infrastructure in the attainment of our development strategy cannot be over-emphasized. As Hon. Members have noticed, the Government has heavily invested in the infrastructure development, particularly the road network. In order to further scale up the existing road network, I propose to increase the Road Maintenance Levy by Kshs3 per litre to be collected and paid into the Road Annuity Fund. 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."
}