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{
    "id": 728715,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/728715/?format=api",
    "text_counter": 188,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "I propose to allow a 150 percent investment deduction allowance for capital expenditures in this sector. I am also proposing to exempt from VAT packaging materials and other inputs intended to support primary, secondary and ancillary marine fisheries and fish processing, and a 50 percent reduction in port charges for fisheries vessels. On measures to reduce income inequality, last year, I expanded the tax bands by 10 percent and increased the personal relief by 10 percent. This year, I propose to amend the income Tax Act to expand the tax bands by another 10 percent and to increase the relief by another 10 percent. This will increase the number of low income earners exempt from tax by raising the lowest taxable income from Kshs11,135 per month to Kshs13,486. This measure will, to a large extent, increase the take home income of a majority of low income earners. In addition, I wish to confirm that the exemption on bonuses, overtime and retirement benefits paid to the low-income earners will remain. Kenya is positioning itself as a hub for motor vehicle assembly for the region. In order to enhance this position, I propose to amend the Income Tax Act to reduce the corporate rate of tax for new assemblers from 30 percent to 15 percent for the first five years. This measure will enhance the return for new investors and increase job opportunities for Kenyans. It is the Government’s policy to promote Foreign Direct Investment so as to expand the local economy and increase employment opportunities. To this end, I propose to amend the Income Tax Act to exempt dividends payable to non-residents by enterprises operating in Special Economic Zones (SEZ) in order to ensure that foreign investors get a good return for their investment. In addition, I propose to reduce the withholding tax on interest payable to non-residents by Special Economic Zones Enterprises from 15 percent to 5 percent. I also propose to amend the Income Tax act to allow enterprises licenced under SEZ to deduct 100 percent of the investment cost of building and machinery. This will enable such enterprises to recover cost of investment within the first year of utilisation. Hon. Speaker, I further propose to amend the Miscellaneous Fees and Levies Act to exempt from export duty and Import Declaration Fees respectively on goods exported to and imported by an enterprise licenced under the SEZ Act. These measures are meant to reduce the cost of doing business, inspire foreign direct investment, position Kenya as a premier business hub and increase employment opportunities."
}