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{
    "id": 601891,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/601891/?format=api",
    "text_counter": 139,
    "type": "speech",
    "speaker_name": "Hon. Mulu",
    "speaker_title": "",
    "speaker": {
        "id": 1955,
        "legal_name": "Benson Makali Mulu",
        "slug": "benson-makali-mulu"
    },
    "content": "just a temporary measure to make sure that Kenyans with challenges in meeting their tax obligations in time can apply for extension of time. This is quite good because it makes taxpayers feel like they are also being taken care of in terms of their needs being considered by the Government. Under Clause 33 there is the issue of relief in a situation where an individual has challenges in paying taxes. At times, from tax assessment, you could be found to be an individual or a corporate body that is not able to pay taxes. So, in case that happens, the law makes provision for you to be excused from paying tax at that particular time because you are not capable of paying. This is quite important as we move forward because it is not always that we will be able to pay tax. There are times you will be low in terms of financial resources. When you are low, the law can be considerate to make sure that you pay your taxes when you are in the right state to pay. Clause 60 talks about those who are not able to pay taxes. I like the idea of the power of search and seizure, meaning if you do not pay taxes then your company could be searched by the tax authorities and the goods for which you have not paid taxes could be taken custody by the Government so that they are able to get the tax component from the goods. So, this Bill is going to help this country in ensuring that we are able to collect taxes in time and we meet our targets. I urge Members to facilitate the passage of this Bill into law. But even as we do so, there are general issues Kenya should be aware of. The issue of corruption in this country sends the wrong signal. If you are a taxpayer and you see a situation where the money you have paid is being misdirected or misappropriated, it discourages the taxpayer. As Kenyans, we need to realise that the issue of corruption sends the wrong signal to the taxpayers. If we do not address this as a country, taxpayers will start engaging in tax evasion. As a taxpayer, I will look for means and ways of making sure that I do not pay tax or if I pay I underpay, because I am sure that once I pay I do not get value for my money. That is why during the regime of Hon. Mwai Kibaki as the President of this country, the domestic tax collection improved by almost three times. It is because Kenyans developed confidence that the money they were giving to the Government was giving them returns in terms of improved services and goods. So, I want to plead with any Kenyan who has the responsibility to collect tax and responsibility to use public resources to use public resources in the most prudent manner so that we give incentives and morale to those who pay taxes to pay them. It is the taxes that make us develop as a country. It is the taxes which give us the good roads that we have. Any time we get an opportunity that we do not collect tax it becomes an issue. The other issue I want to bring on board is the issue of ensuring that even the informal sector also contributes to the development of this country. So, we need, even as we think about harmonising the current procedures, to think about bringing into the tax bracket more Kenyans who are in the informal sectors. Even Kenyans in the informal sectors would be more than willing to contribute to the development of this country. When this country develops, we are all happy as Kenyans and we are sure that future generations will find a better Kenya to live in. The other issue relates to landlords. I am happy that the National Treasury has come up with the idea of 10 per cent payment if you do not collect more than Kshs10 million per year. In this country if you do a quick assessment, you will realise that a majority of the landlords do not meet their expected tax returns. This is an area we need to think about. How do we make sure that, because they get income from the rent they collect, they pay tax from the rent income? 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."
}