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{
    "id": 728721,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/728721/?format=api",
    "text_counter": 194,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Following the enactment of the VAT Act 2013, it was important that regulations be adopted to support the smooth implementation of the Act. The VAT regulations have been prepared and subjected to stakeholders’ engagement as required. The regulations have been aligned to the Tax Procedures Act, 2015, which consolidated procedures that are common into one legislation. I will, therefore, be publishing the VAT regulations to support the smooth implementation of the VAT Act, 2013. We have received a number of proposals for consideration during the review of the Income Tax Act. Among the issues received for review include taxation of capital gains, compensating tax, taxation of pensions, taxation of extractive industries and taxation of cross border transactions, among others. We intend to address these issues during the overhaul of the current Income Tax Act, which we have already commenced and we should be completing this in one or two months’ time. Hon. Speaker, the draft Income Tax Act is expected to be published shortly for public input in accordance with the Constitution. Specifically, the new Income Tax Act is expected not only to simplify the administration of the Act, but also to reduce the cost of compliance by taxpayers. The review is also guided by the need to expand the tax base and align the Act with the best practice and ensure certainty in the tax law. Last year, I introduced tax amnesty for taxpayers willing to reinvest back home provided there was a conducive environment to facilitate such reinvestment. I have noted that there is need to clarify the circumstances under which the amnesty will be granted. Consequently, taxpayers willing to enjoy amnesty should declare the income for year 2016, file return and account for year 2016 by 30th June, 2018 and transfer back to Kenya the funds voluntarily declared under the amnesty. I expect KRA to issue regulations on the same and urge taxpayers to cash in on this amnesty and clean up their records with KRA. Excisable Goods Management System has applied a uniform cost of stamps irrespective of the cost of the various products. The uniform charge for the stamps has brought challenges in respect of low cost products. In order to enhance tax administration, regulations that provide for differentiated prices based on the cost of the product will be gazetted shortly. Accordingly, the cost of stamps now ranges from Kshs0.50 to Kshs2.5 depending on the cost of the product. In order to discourage the consumption of illicit drinks, I have proposed 80 percent remission of Excise Duty in respect of locally manufactured beer made from locally produced sorghum, millet or cassava or any other produce, excluding barley."
}