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{
    "id": 556219,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/556219/?format=api",
    "text_counter": 267,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "During the pre-budget consultative meeting held in Arusha on 11th April 2015, the Ministers for Finance agreed to remove gas cylinders from the exemption regime. In exchange, the import duty rate for the cylinders was reduced from 25 per cent to 0 per cent. Considering that Kenya is the only manufacturer of gas cylinders in the East African region, I negotiated to import gas cylinders at a rate of 25 per cent instead of 0 per cent to protect our local manufacturers. Our people in rural areas suffer serious indoor pollution and associated respiratory diseases occasioned by fossil fuel and firewood for domestic cooking. To encourage use of clean and affordable biogas energy system for cooking and lighting to rural households, I propose to exempt VAT on plastic bag biogas digesters for use in the sector. Hon. Speaker, through the Finance Act, 2014, services to goods in transit were exempted from VAT. The change affected the case of cross-border transport services provided by Kenyan transporters in the regional market, making Kenyan transporters less competitive. In order to encourage and sustain growth in this sector and also to harmonise the treatment of those services across the region, I propose to zero-rate services in respect of goods in transit. As part of our industrialisation strategy and Vision 2030, the Government has prioritised the development of industrial parks targeting the small and medium-size enterprises in five selected locations of Nairobi, Nakuru, Kisumu, Mombasa and Eldoret, to provide infrastructure facilities to our investors. I, therefore, propose to exempt from VAT taxable goods and services for use in the construction of the infrastructure works in industrial and recreational parks of 100 acres or more. This measure is expected to make it attractive for both foreign and local investors to set up those parks in Kenya and create jobs for our people. The use of ICT in schools remains a key priority of the Government that is meant to enhance primary school education. In order to encourage investments in local assembling of the electronic devices, I propose that inputs imported or purchased locally for the assembly of those devices be exempted from VAT. I have continued to receive representations from the private sector on the need to introduce measures to make it cheaper and competitive for them to conduct business in East Africa. I have, therefore, lowered the Import Declaration Fee (IDF) from the rate of 2.25 percent to 2.0 percent as a demonstration of the Government’s commitment towards harmonisation of IDF in the East African Community (EAC) region."
}