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{
    "id": 955013,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/955013/?format=api",
    "text_counter": 197,
    "type": "speech",
    "speaker_name": "Roysambu, JP",
    "speaker_title": "Hon. Isaac Ndirangu",
    "speaker": {
        "id": 2701,
        "legal_name": "Isaac Waihenya Ndirangu",
        "slug": "isaac-waihenya-ndirangu"
    },
    "content": "one Member are also shared by others Members. We have ably dealt with the concerns of Members with regard to the anti-money laundering proposal. I do not want to repeat what the Chair has said. Allow me to talk about Clause 36. In the Finance Bill, 2018, we proposed an anti-adulteration levy on kerosene. This Bill seeks to amend that clause and provide that the Commissioner shall refund the levy upon written application of a registered or licensed manufacturer, where the Commissioner is satisfied that the levy was paid in respect of illuminating kerosene that has subsequently been used for the manufacture of paint, resin or shoe polish. This will give relief to the manufacturers of those products. There are many in the jua kali sector and cottage industries. The manufacturers who presented before us indicated that it is becoming very expensive to manufacture paint and shoe polish arising from the adulteration levy that was preferred in the Finance Bill, 2018. This refund is a welcome relief to all these manufacturers and will surely boost their production and reduce their cost of production. Allow me to also touch on the proposal to reduce the Corporate Tax on new investors who are planning to invest in recycling of plastics. Plastics have been a real mess in this country in as far as conserving our environment is concerned. The Corporate Tax relief that we are extending to new investors who will invest their money in recycling plants will help us to clean our environment. Allow me this opportunity to talk to the governors of this country. The other day, when I was travelling abroad, I sat next to a gentleman who was explaining to me how difficult he found it to invest in one of our counties. He and his company from Spain had proposed to invest in recycling plants in Nairobi and Mombasa. The conditions that were placed on them by the county governments were prohibitive, including suggestions that the leaders there should be given shares in their companies. We must encourage our governors, the staff and the executive who operate at the county level to receive investors and make it easy for them to invest their money, so that we can have direct foreign investment. Clause 13 suggests that companies that will invest in plastic recycling plants will be granted a tax incentive of 15 per cent, down from 30 per cent. This incentive will last for the first five years from the beginning of the operation. Allow me to also emphasise on the stakeholders’ sentiments regarding the Export Duty on hides that are classified as wet-blue that has been proposed in Clause 37. When we sat down to listen to those who have invested in tanneries and those who process hides and skins, they informed us that presently, the market is very good for wet-blue class of hides, but if this proposal to tax Kenyans and Kenyan companies which are earning us foreign exchange by exporting processed hides is passed, we will be killing our own industries. They suggested that they be given time so that locally, we mobilise and train human resources who can absorb wet- blue hides for the manufacture of shoes. Presently, the value addition of hides and leather products locally is very low. It is time this industry woke up. It is facing a lot of competition, even within East Africa. It is important we give time to the tanneries and even the small-scale operators who process leather, hides and skins from goats, cattle and other animals. We defer this export tax until we have invested sufficiently and trained our young people to have skills to make leather products. Otherwise, our proposal, as a Committee, is to shelve this export tax. We will bring that amendment at an appropriate time."
}