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{
    "id": 954661,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/954661/?format=api",
    "text_counter": 353,
    "type": "speech",
    "speaker_name": "Kathiani, WDM-K",
    "speaker_title": "Hon. Robert Mbui",
    "speaker": {
        "id": 1750,
        "legal_name": "Robert Mbui",
        "slug": "robert-mbui"
    },
    "content": "to run the Budget as it were. This is something that we need to look at going to the future. When we deal with expenses then later on with the income, I do not know whether that is the best practice internationally. On matters of taxation and duty, it is important that we are able to figure out how to raise money to fund Government projects. There are a lot of things that Members talk about here. In fact, one of our cardinal responsibilities, as the representatives of the people, is to figure out how to get development for the people who elected us; how to get them water, how to improve their health and infrastructure in their schools and roads, and all sorts of agendas that come through our constituents. So, basically, it is important to look at these issues of taxation clearly. At the same time, we have to be careful. As we tax our people, taxation must not go beyond. There is a way you can tax people so that they generate income that will lead to more taxation that will give the Government more money. I have looked at some of the proposed changes in taxation that are supposed to raise revenue for the country. For example, the proposed taxation on income from the digital marketplace is shocking. The digital market is the future. If we did not target and spot it several years ago, it means that was a major oversight. The future is digital. Any taxation that is being planned in the country must look at that area critically. A lot of our buying and selling is going to take place online. Going into the future, probably few or no people will walk to the shops. People will be able to order whatever they want from the comfort of their homes. That is the future we are looking at. So, this is futuristic and it is a brilliant idea to tap on that market. Secondly, I saw the expansion of the withholding tax bracket to incorporate security services, cleaning and fumigation, outside catering, transport except by air, sales promotions and marketing services. My only concern on that will be on enforcement. It is one thing to talk about expansion of that bracket. How do you enforce it? An area like outside catering has so many people doing it in this country. Every pre-wedding, wedding, funeral and birthday parties are serviced by outside caterers. How will the tax collection agencies ensure that they capture this market and raise the revenue they require? We hope that it will also not be abused so that, for example, when I have a birthday party for my daughter, somebody will not walk in and claim that whoever did the cooking is offering outside catering services. So, that is an enforcement issue which needs to be looked at. The other issue is the re-introduction of the turnover tax of 3 per cent on people whose businesses have a gross receipt of less than Kshs5 million. That is a positive thing."
}