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{
    "id": 808275,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/808275/?format=api",
    "text_counter": 204,
    "type": "speech",
    "speaker_name": "Kipkelion East, JP",
    "speaker_title": "Hon. Joseph Limo",
    "speaker": {
        "id": 1915,
        "legal_name": "Joseph Kirui Limo",
        "slug": "joseph-kirui-limo"
    },
    "content": "of Kshs200,000, you will be relieved by being told to only pay the difference between Kshs200,000 and Kshs108,000. This looks reasonable on top of the proposal to double the savings. At a later stage, we will consider this proposal. As I end on the stakeholders, I will not cover all of them. The KRA appeared before us. Remember KRA is also struggling to collect revenue. This country is one which is capable of funding its own the budget. If we prudently collect our revenue, this country will run away from issues of going for debts from outside. We can sustain ourselves only if we have serious tax collection measures. Therefore, the KRA came to us and they were having ranging opinions. Some of them were supporting these measures and some of them were opposing. At the end of the day, we will come up with some raft of amendments to this proposal. Let me now go to the particular tax laws and just highlight what these amendments are trying to do. On Income Tax, I had already talked about the doubling of savings, which was being applied to particular home ownership savings plan from Kshs48,000 to Kshs96,000. On that, I said very clearly that there is also a proposal by the stakeholders to have 15 per cent relief to a maximum of Kshs108,000. There is also a proposal on the Income Tax of exemption of Special Economic Zones from paying Capital Gains Tax and Compensating Tax. These zones are important in promoting the manufacturing pillar of what the Government is planning to do. The only issue is that when it comes to the Capital Gains Tax and Compensating Tax, to help the Members understand, the companies which operate under the Special Economic Zones are currently paying tax at the rate of 10 per cent. In case they do not pay the tax because they did not declare profit and they end up paying a dividend, the Government normally levies what we call Compensating Tax. We do not understand how you do not make profit for purposes of not paying Income Tax, and then you declare dividends to the owners. To ensure the Government reins on their profits, there is Compensating Tax. This proposal to exempt these companies from Compensating Tax was opposed by the KRA because it is going to reduce revenue collection. On the tax on winnings, the proposal is to include taxation on gaming and lotteries to incorporate issue of winners. When you win Kshs100 million through betting, you go home with the loot. There is no tax. Now, this Bill is proposing that winning should also help in enhancing our taxation. I want to add to what the Leader of the Majority Party has said. There is gaming and lotteries in the whole world. But we should have very organised and orderly lotteries. Some of us have never entered a casino because they are specifically for certain kinds of people. There are the Chinese who have come to this country. If we do not control them, they are going to kill the economy of this country. They are going to kill the minds of our people. While we are doing devolution of management of the country and resources, they have come up with devolution of casinos. You will find small machines operated by big guys. Some of the Chinese who are in Kenya are engaging in hawking. You will be surprised. Members, if you visit a shopping centre in your constituency, you will be surprised. You heard what the Leader of the Majority Party said. I was walking in a small shopping centre one time and suddenly, I saw some lights coming from some room. I asked what it was and I was told to go and I would be shown. The people at the rural areas are experts. They put in coins and some lights come on, then they win or lose. The owners are Chinese; big boys who drive big cars which you cannot afford. What has happened at the end of the day? They have killed the economy and relationships in families. Many women, children and men go to the shopping centres for particular purchases but are tempted to go and play in small casinos. The money goes. What happens? War starts there. So, we are saying that we support the current crackdown on the small machines so that they leave the casinos to an The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}