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{
    "id": 936851,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/936851/?format=api",
    "text_counter": 179,
    "type": "speech",
    "speaker_name": "Hon. (Ms.) Fatuma Gedi",
    "speaker_title": "",
    "speaker": {
        "id": 1139,
        "legal_name": "Fatuma Gedi Ali",
        "slug": "fatuma-gedi-ali"
    },
    "content": "deductible input VAT related to zero rated supplies. In addition, the amendment proposed in Regulation 13, Part (b) of the proviso clarifies what constitutes an exported service for VAT purposes, regardless of who pays for them. The Committee considered the Regulations against the provisions of the Constitution of Kenya, the principal Regulations, i.e., the Value Added Tax Regulations, 2017 (Legal Notice No.54 of 2017), the Interpretations and General Provisions Act (Cap 2), the Value Added Tax Act (No 35 of 2013) and the Statutory Instruments Act (No.23 of 2013) which regulate the making, scrutiny and publication of the Regulations. The Committee also took into account submissions by the private sector, particularly the KPMG Advisory Services Limited regarding the implementation challenges of the principal Regulations. The Committee also held meetings with the Kenya Revenue Authority (KRA) and the National Treasury in accordance with Section 16 of the Statutory Instruments Act, 2013, and received written submission from the Clerk of the National Assembly dated 4th April 2019. Pursuant to section 16 of the Statutory Instruments Act, 2013 the Committee invited the regulation-making authority (the National Treasury & Planning) to a consultative meeting on 20th August 2019 where the authority made a presentation to the Committee on the proposed changes to the Value Added Tax Regulations, 2017 (Legal Notice No.54 of 2017). The National Treasury and Planning led by the Chief Administrative Secretary, Hon. Nelson Gaichuhie appeared before the Committee on 8th and 20th August 2019 to respond to the Committee’s concerns regarding the implementation of the VAT Regulations, 2017 and the VAT (Amendment) Regulations, 2019. Hon. Temporary Deputy Speaker, the Committee was informed as follows: That the outstanding claims not processed as at the end of the Financial Year 2018/2019 amounted to Kshs24.3 billion compared to Kshs21.3 billion in the Financial Year 2017/2018. That KRA has put in place the following measures to fast-track claims processing: a) Formation of a dedicated team. b) Classification of the taxpayers. c) Re-engineered refund processes. d) Enhanced staff capacity consultations with industry stakeholders. That KRA held several engagements with stakeholders on the challenges with implementation of VAT Regulations, 2017. Key among the engagements includes meetings with the Institute of Certified Public Accountants of Kenya (ICPAK), meeting with the Kenya Association of Manufacturers (KAM) and a roundtable engagement with various representatives of the private sector under the umbrella of Kenya Private Sector Alliance (KEPSA). One of the key concerns raised by the stakeholders in these engagements includes the challenges with the new VAT refunds formula. It is as a result of these engagements that the VAT (Amendment) Regulations, 2019 were developed. The Committee observed:"
}