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{
    "id": 579024,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/579024/?format=api",
    "text_counter": 105,
    "type": "speech",
    "speaker_name": "Hon. Langat",
    "speaker_title": "",
    "speaker": {
        "id": 384,
        "legal_name": "Benjamin Kipkirui Langat",
        "slug": "benjamin-langat"
    },
    "content": "also reduce the refunds. We were informed that research has been done and mainly when you do the output and input VAT, what usually remains is around 6 per cent. So, this will be about the net amount that the Government needs to get from VAT payers. The other proposal is previously those who were supposed to get VAT refunds from KRA on zero-rated items could lodge claims at any time after the VAT is paid. But this Bill seeks to restrict that by providing that anyone seeking a refund from KRA must do so within 12 months. This is also very good for the Government to be certain about which claims are coming. If you leave it open-ended, the Government will be waiting and after five years, someone will come to claim that some money is due to them. So, the issue of VAT refunds claims is now restricted so that one must claim within 12 months. Otherwise, the Government will have a timeless wait for people to come and claim. On the exemptions, Clause 5 proposes to amend the First Schedule which deals with exemptions of the VAT Act exempt supplies. Some of the items that are now included in the exemptions list are aircraft parts, aid-funded supplies so that if we have a project which is funded by a foreign country or a donor, we do not ask them to pay VAT. What has been happening is that when you ask them to pay VAT, they say they have to get exemption or a waiver. We are now saying that by law, if it is a foreign-funded project, then you give it an exemption. It will ease the way the implementation of those projects will happen. The other exemptions which are proposed are goods imported for the Kenya Film Commission (KFC). Nigerian movies have been dominating our TV stations. It is a step in the right direction to bring Kenya local content. Local content must be encouraged and the way to do that is to ensure that those items used by our actors are exempted from VAT. We do not want to see Nigerian movies from morning to evening. We also want to give our youth a benefit so that they are able to come in and improve local content in our television programming. That is why we are saying that goods and services imported for KFC be exempted. We had promised our children laptops. The Bill is proposing to exempt parts which are imported or manufactured locally for the purposes of manufacturing laptops to supply school laptops. This is to ensure that most of our schools get cheaper laptops and computers. It is proposed that we exempt parts which are used to manufacture those laptops. We even need to say even the computers that go to school should be exempted so that we increase accessibility of computers in our schools. On zero-rating, there are a few items which have been brought on board. One is purchases from duty-free shops. That is like an export for those who are departing. Two, supply of taxable services in respect of goods on transit. We have zero-rated export goods, but when you look at the services which help to export those goods, they are not zero-rated. For example, the services like the trucks that transport fuel from Kenya to Uganda---"
}