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{
    "id": 579034,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/579034/?format=api",
    "text_counter": 115,
    "type": "speech",
    "speaker_name": "Hon. Langat",
    "speaker_title": "",
    "speaker": {
        "id": 384,
        "legal_name": "Benjamin Kipkirui Langat",
        "slug": "benjamin-langat"
    },
    "content": "Hon. Speaker, Clause 16 amends the First Schedule of the Income Tax Act in order to grant tax exemption on transfer of land below Kshs3 million. The Income Tax Act used to give tax exemption on transfer of land up to the value of Kshs30,000. I do not think there is land worth Kshs30, 000 in Kenya today. The law provided for a value of Kshs30,000 for exemption. We all live in Kenya and know that the value of land has gone up very much and we need to adjust to the times. This proposal seeks to increase that value from Kshs30,000 toKshs3 million, so that if you are transferring land worth between Kshs0 and Kshs3 million, then you are exempted from the transfer taxes. Again, this is Kenyan friendly, especially to those of us who come from the rural areas. I want to warn the House that there is a proposal for the KRA to tax compensation when the Government takes over land from a person for infrastructure. For example, when they are doing roads, one is compensated and then Government wants to tax the compensation. I come to this House with an open mind, ears and eyes, and I will listen to what the Members have to say. You are telling somebody to leave his land to the Government to construct a road and then you have to tax the money that you pay the individual as compensation. This is something that we will reconsider at the Committee Stage. Last time, it came but we rejected it at the Committee Stage. This time round, we may have changed our views, but it is still there. That is just to inform hon. Members. I want to go to the miscellaneous sections, which amend the various financial sector laws. I have done the VAT and the Income Tax. You will not see Excise Duty in this Bill this time round because we have before this House a new Excise Duty Bill. It has been tabled and is due for the Second Reading. You will not find any proposals regarding Excise Duty in this Finance Bill because we have an Excise Duty Bill on its own. Under the miscellaneous amendments to the various laws, Clause 21 intends to amend the Stamp Duty Act. One of the provisions under the Miscellaneous Stamp Duty Act is proposed for amendment for us to exempt transfers under real estate investment and Trusts from paying Stamp Duty. This is a new investment vehicle, where people can come together. Stamp Duty is exempted, so that we can encourage people to come together to invest in real estate, make money and provide housing to Kenyans. Two, Sections 22 to 33 intend to amend the Insurance Act, so as to transfer some functions by amending the Schedule to the Insurance Regulatory Authority Act, which have to be performed by the Cabinet Secretary, the National Treasury. It is also to streamline the registration of insurance agents and the provision on minimal capital requirement. Registration of insurance agents has been done by insurance companies. The proposal here is to remove that proposal and make it the business of the Insurance Regulatory Authority to register insurance agents, so that we do not have insurance companies refusing to register some people. Let us give it to the regulator. It is the business of the agents now to go and look for business from these operators. Under the capital requirements - I want the Members to listen to these proposals - there is a proposal to increase as follows:- 1. In the case of general insurance business, there is a proposal to increase to Kshs600 million from the current Kshs300 million or risk base capital determination or 20 per cent of net premium of the preceding financial year. So, it is a proposal to double the capital. 2. For the general insurance, in case of long-term insurance business, increase to Kshs400 million or risk base capital determination or five years of the liability of life business for 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."
}