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{
    "id": 910347,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/910347/?format=api",
    "text_counter": 315,
    "type": "speech",
    "speaker_name": "Mr. Henry Rotich",
    "speaker_title": "The Cabinet Secretary for the National Treasury",
    "speaker": {
        "id": 13142,
        "legal_name": "Henry Rotich",
        "slug": "henry-rotich"
    },
    "content": "This will not only help reduce the build-up of VAT refunds, but will also help enhance the cash flow of our business community and stimulate economic activities and job creation. Kenya is positioning herself as a leading assembler of electronics and computers within the region. This development initiative will transform Kenya into a major manufacturer and supplier of electronics and computers in the EAC. In order to encourage the growth of this sector, I propose to exempt from VAT locally manufactured mother boards and all inputs used in their manufacture. This will make them more competitive against imported mother boards. The Government has made tremendous efforts in protecting our environment. The country has banned the use of plastic bags to reduce pollution and provide clean environment to its citizens. However, other forms of plastic waste remain a major cause of both land and water pollution. To address this challenge, there is need to promote plastic waste management by encouraging recycling of plastic waste. In this regard, I propose to exempt from VAT all services offered to plastic recycling plants and supply of machinery and equipment used in the construction of these plants. Further, to encourage investment in plastic recycling, I propose to lower Corporation Tax to 15 per cent for the first five years for any investor operating a plastic recycling plant. On matters relating to Customs, I have proposed measures intended to make our products more competitive while at the same time protecting local industries from unfair competition. This will support the manufacturing sector under the Big Four plan which is expected to grow to 15 per cent of GDP by 2022. The details of the Customs measures will be communicated through the EAC Gazette and will be effective from 1st July 2019. I wish to highlight a few of them. Our Metal and Allied sector continues to face stiff competition from imported cheap and subsidised iron and steel products. In order to protect this industry, I have retained the ad valorem rate of import duty at 25 per cent with corresponding specific rates of duty in a wide range of products produced in the region. Kenya has sufficient capacity to produce some paper and paper board products and, therefore, there is need to protect these industries. However, the common external tariff on these products is 10 per cent. To protect manufacturers of these products from unfair external competition, I have proposed that the import duty rate which was increased last year to 25 per cent for a one-year period be maintained for another one-year period. As you may be aware, the Government banned the logging of trees to stop deforestation. However, our manufacturers who use raw timber to manufacture furniture and other products are affected by this measure as they now lack adequate supply of raw timber. To address their plight and at the same time protect our forests, I have proposed to reduce import duty on raw timber from 10 per cent to 0 per cent. In addition, to protect the timber and furniture industry from 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."
}