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{
    "id": 577806,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/577806/?format=api",
    "text_counter": 256,
    "type": "speech",
    "speaker_name": "Hon. Langat",
    "speaker_title": "",
    "speaker": {
        "id": 384,
        "legal_name": "Benjamin Kipkirui Langat",
        "slug": "benjamin-langat"
    },
    "content": "Thank you, Hon. Temporary Deputy Speaker. I was also saying that with a light touch. Let me say this is the first time we are introducing Excise Duty Bill which is separate from the Customs and Excise Act. This is pursuant to the East African Community Customs Management Act of 2004 which had the effect of removing all the issues that dealt with customs from the Customs and Excise Act which left alone the matters on excise in the former Customs and Excise Act. So, the reason this Bill is coming up is to have a law which specifically deals with excise duties. I wish to inform the House that Excise Duty alone on average contributes 12 per cent to our annual revenue. In 2015/2016, it is expected that Excise Duty will yield Kshs144 billion against our budgeted ordinary revenue of Kshs1.3 trillion. So, this is a very important tax law because it contributes significantly to our revenue. There is a slogan in the Kenya Revenue Authority (KRA) which says you pay your taxes so that you stand and do not depend on others. If we are to enhance this tax alone, we will move closer to Kenya becoming independent in terms of the resources it generates. Out of the Kshs144 billion or out of the normal Excise Duty, quite a proportion, close to 70 per cent, is collected from two commodities; alcohol and tobacco. This tax is normally called “sin tax” because those who engage in alcohol and tobacco are engaged in sins. The sins must be taxed so that we can make Kenya move forward. The other reason this tax is levied is because some of these products are harmful and their prices do not reflect those inherent harmful items. Therefore, this tax is levied to compensate for those harmful effects which these products bring to our environment. Through this Bill, Excise Duty changes are proposed to be imposed on harmful cigarettes and tobacco, volumes of harmful alcoholic beverages, sugar-sweetened beverages consumed, volume of polluting fossil fuels and old vehicles we import into the country. This will be subject to debate. Initially, we have been using a rate to apply to the age of the vehicle but because we are moving to what we call the specific rates, this Bill proposes to use a specific rate of Kshs150, 000 for any vehicle of any age. This House will make a decision. For example, if you are buying a Probox, you will pay Kshs150,000. If you are importing a Range Rover, this Bill proposes that you pay Kshs150, 000. At the right stage we may have to look at whether that is fair to the low income and high income earners. 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."
}