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{
    "id": 685264,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/685264/?format=api",
    "text_counter": 114,
    "type": "speech",
    "speaker_name": "Hon. (Ms.) Otucho",
    "speaker_title": "",
    "speaker": {
        "id": 12837,
        "legal_name": "Mary Emaase Otuch",
        "slug": "mary-emaase-otuch"
    },
    "content": "In Clause 6, the Bill seeks to empower the Income Tax Commissioner to appoint withholding agents for residential income tax. This will also help in improving putting structures in place that will assist the Commissioner in collecting the revenues. Clauses 7 to 11 seek to repeal a number of sections in the principal Act to realign it to the provisions of the Income Tax procedures. Clause 8 seeks to repeal Section 51(a) that deals with filing of tax returns and keeping of records. We know that with the advent of digitisation, the iTax and Electronic Tax Register (ETR) have been rendered redundant and we do not need that clause. So, those are some of the main proposed amendments from that section. I also want to mention that this Bill proposes some tax exemptions for bonuses, overtime and retirement benefits for those employees whose taxable employment before taxation is below the lowest tax band. So, for those people earning less within the specified tax bands, they have proposed exemptions. There is also a proposed exemption to the interest income on bonds which are issued by the East African Development Bank (EADB). Also, there is a proposed relief to enhance personal relief by 10 per cent. However, when we look at that proposed relief, it comes to about Kshs118. We had a concern there as it does not translate to much considering the increased cost of living. So, that is one of the areas that are contentious that we shall be looking into. This Bill also proposes to reduce Corporate Tax from 30 to 20 per cent to give incentives to companies that construct, at least 1,000 residential units. This will be encouraging investors who want to invest in the housing sector to be able to invest more units. If you are able to put up 1,000 units then you have a less Corporate Tax to pay. Those are some of the highlights I wanted to mention. Clauses 17 to 22, propose amendments to the Excise Duty Act. One of the highlights which we were concerned about, as a Committee, is the imposition of a duty of Kshs7.20 per litre on kerosene. We know that most Kenyans who cannot afford gas or electricity depend on kerosene. So, increasing duty on kerosene will be touching on the vulnerable people in this country and that is an area we will be looking at. It would not be good for the economy. It also proposes to introduce a duty on cosmetics and beauty products at a rate of 10 per cent in Clause 21(b). It is excluding water from Excise Duty under Clause 21(c) and that is a good thing because this is a basic commodity and everyone needs water. So, taxing water would not be a good thing to do. 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."
}