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{
    "id": 579127,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/579127/?format=api",
    "text_counter": 208,
    "type": "speech",
    "speaker_name": "Hon. Mulu",
    "speaker_title": "",
    "speaker": {
        "id": 1955,
        "legal_name": "Benson Makali Mulu",
        "slug": "benson-makali-mulu"
    },
    "content": "In terms of the good things, I am impressed with the proposal to exempt from taxation goods which are going to be used in film production. This is an area which is going to help Kenyans in terms of developing our local talent and at the same time assist this country to create employment for such individuals who are talented in this area and who have not fully been engaged in terms of employment. So, this is a good proposal and we need to support it as a House so that the requirement to have 60 per cent local content on our televisions is realised. The other thing which is good is tax rebate for companies which are going to employ our graduates. Unemployment is a major problem in this country. All of us Members of Parliament represent our local and urban constituencies. It is a known fact that unemployment is a major problem to us as leaders. I do not think any one of us in this august House can claim to have sorted the challenge of unemployment adequately. We are all struggling to address this matter. So, when an opportunity like this is presented to our employers, so that when they employ our graduates they get a tax rebate, it is a good move. This is a move in the right direction and I urge honourable Members to support this proposal. The other thing which is good is in the development of real estate. The Bill says that where people come together as a co-operative society and they want to engage in real estate development, then they should be considered for tax exemption. This is good. If you look at Kenya as a country, you will realise that we have serious housing challenges more so when you consider the slums where our people in urban settings live. Hon. Deputy Speaker, the idea that those who are going to engage in real estate development are supposed to get some tax exemption is good and it needs to be supported. This is an area we are going to support but then there are other areas - I wish that the Chair would just listen - that we might need to amend. The first one is that the Bill is proposing that we increase the lowest value of land you can be allowed from Kshs30, 000 to Kshs3 million. I accept that Kshs30, 000 is quite low but, at the same time Kshs3 million is quite high. Very few Kenyans can afford to buy land that is worth Kshs3 million. So, while I agree that Kshs30, 000 is low, we need to get to a middle level so that we do not leave many people out of the tax bracket. In that case, you do not generate the revenue that you really need for this country. The other area which requires an amendment is the minimum capital for the banks. Many Members have talked about this. I would like to join them in saying that this is a proposal we need to reconsider. As a country, we should be moving to a situation where we get the majority of our people getting banking services. In a situation where we are going to raise this minimum capital, we will continue locking them out. I see a situation where we want most of the small microfinance enterprises to move from that level and become banks. We want to see most of our saving societies moving from saving societies to becoming banks. So, if we make this minimum capital quite high, then we will lock out all these potential banks coming up in this country. What will happen is that we will lock our people out of banking. That will not be helping them. This is a proposal I plead with the Committee Chair and Hon. Members to either retain it where it is now or if possible, to even reduce it so that we get most of our people getting into the banking sector. The other area where we need to make an amendment is in the fuel levy. The proviso is to have additional Kshs3. This proposal is like a double edged sword. It is very important because it targets the rich and the middle level income earners. In collection of tax, this is superb. We are going to target the right people who should be taxed because they have the money but, 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."
}