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{
    "id": 664345,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/664345/?format=api",
    "text_counter": 134,
    "type": "speech",
    "speaker_name": "Hon. Chanzu",
    "speaker_title": "",
    "speaker": {
        "id": 11,
        "legal_name": "Yusuf Kifuma Chanzu",
        "slug": "yusuf-chanzu"
    },
    "content": "Thank you, Hon. Temporary Deputy Speaker. This is a very important amendment to the VAT law. When you look at the Budget Statement that the Cabinet Secretary for the National Treasury read in this House recently, you will find that the revenue we are able to raise locally to run the affairs of the Government is low. The Budget is at Kshs2.26 trillion but the money we are able to raise locally depends on income tax and VAT. Income Tax is expected to raise almost 45 per cent while VAT is expected to raise almost 25 per cent of the total revenue. Therefore, VAT is a large component of the revenue that we expect to raise. Excise duty is expected to raise about 11 per cent, while Ministries are expected to raise 8 per cent. Import duty will raise 6 per cent of the revenue as other sources of revenue raise 6 per cent. This money is supposed to benefit those who pay the tax. That is why it is important that the proposed waiver of VAT on transport of sugarcane to the factories should be carried out. It is a hindrance to farmers at the start. One can produce sugarcane but be unable to transport it because of excessive costs. That way, no progress is made. That is what has been hindering growth in this country and making Kenyans poor. Agriculture is the mainstay of our economy. The national Government at independence thought very well. I praise our independence Government. Factories like Mumias Sugar Company (MSC), Nzoia Sugar Company (NSC) and Pan Paper Mills in Webuye were set up in the western region of Kenya. That took into account the fact that Kenya is an agricultural country. The factories were set up to encourage our people to produce and earn their livelihood. Even factories that existed before independence, like Miwani Sugar Factory, were killed. People wonder if we can produce sugar. The soils are good for sugar production. Kenyan produce like tea and sugar fetch the best at the world market, but we are not able to produce because of corruption and heavy taxation on farmers by the Government. This is one way of helping farmers to earn from their sugarcane. In any case, creation of employment is very important. The era of white collar jobs is gone. There is a limit as to how many people cities like Nairobi can take from the rural areas. The more incentives we give to the agriculture sector to keep people in the rural areas, the better. It will help towns. There are countries where governments are starting new cities. The Government of Tanzania wants to start up a new city in Arusha. If the economy of Kenya can grow through aspects like sugar, tea and the paper mills, like the one in Webuye which the Government is now making an endeavour to revive, the big number of Kenyans with skills in diverse areas should help to develop this country as we create adequate employment opportunities instead of forcing everybody to move to the cities in search of employment. Everybody thinks that they will get employment if they come to Nairobi. If those factories are working, out of what I heard a colleague talk about economies of scale, there are many advantages that will accrue. Out of the earnings generated there, it will be easy for us to maintain the road infrastructure and render other services. For those who have been to a factory like Mumias Sugar Company, they know that it has facilities 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."
}