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{
    "id": 954728,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/954728/?format=api",
    "text_counter": 420,
    "type": "speech",
    "speaker_name": "Kikuyu, JP",
    "speaker_title": "Hon. Kimani Ichung’wah",
    "speaker": {
        "id": 1835,
        "legal_name": "Anthony Kimani Ichung'Wah",
        "slug": "anthony-kimani-ichungwah"
    },
    "content": "led by Hon. Limo, has seen the logic of not going into that area. I appreciate what the Member for Kathiani said earlier, as much as we do the budget and seek how to finance it through the Finance Bill. Last year, we had a problem with VAT on fuel and other proposals that were to finance the Budget that were declined by this House. I must thank the Committee. Unlike last year, when people made this Chamber a dancehall for mugithi and other songs to object to things they did not agree with, and which they thought were popular with the public, the Committee has done the right thing. It has gone out there, listened to the issues that the public are not in agreement with and come up with proposals not just to delete those particular propositions, but also to make propositions on alternative ways of raising revenue. I appreciate what they have done, as much as Hon. Rasso does not seem to be very comfortable with going for the more obvious sources of revenue in terms of levying more excise duty on betting. They have gone for betting and sin taxes, including alcohol and cigarettes. I think it is the best thing to do under the circumstances of a country that is short of revenue. People will still drink. Even if you increase the price of beer to Kshs300 per bottle, they will still drink. Smokers will still smoke. So, tax them more. We should tax them more and more. Even the people who are gambling should be taxed more so that the Government can raise revenues. I thank the Committee for that. The other issue that I want to speak to is the Capital Gains Tax. I am glad the Committee has proposed to remove the proposal to increase the Capital Gains Tax from 5 per cent to 12 per cent. It was not just absurd that the National Treasury had proposed such a huge increment at a time when we are talking about housing being one of the pillars in the Big Four Agenda. Increasing the Capital Gains Tax will negate the expected gain from the affordable housing agenda under the Big Four Agenda. Therefore, I am glad the Committee realised that it would negate that particular pillar of the Big Four Agenda. If we enhance the Capital Gains Tax, we will make housing developers and those in the property industry - I must declare interest because I have a big interest in the property industry - to increase the prices of properties and houses, and therefore, negate the very things we are talking about under the Big Four Agenda, especially on housing. Secondly, the Capital Gains Tax as proposed was almost two-and-a-half times more, from 5 per cent to 12.5 per cent. I had hoped that they would even consider increasing that to about 7.5 per cent. If you read the Committee’s Report, you will realise that all the stakeholders who appeared for public participation were opposed to these things. It is also good to be responsive to the things that are raised by people who appear before our committees. They have, therefore, removed that particular provision. I thank them for supporting the affordable housing pillar of the Big Four Agenda. Finally, I will speak on interest rate capping. I agree with everything that Hon. Chris Wamalwa has said in terms of interest capping. It is, indeed, true that this country has become captive of our banking industry. Our banking industry is not only coercing and arm-twisting this country’s economy, but also arm-twisting very innocent Kenyans who seek to borrow money from banks. Even as banks do that, we must not forget that the biggest culprit in the issue of high interest rates is the Government of Kenya. Until and unless the Government controls its appetite for domestic borrowing, we will not and we will never address the issue of domestic borrowing. Banks prefer to lend to the Government because the Government borrows at between 9 and 12.5 per cent risk free. Even if you were a bank owner today, you would not lend to Kimani, Wanga, 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."
}