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{
    "id": 955056,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/955056/?format=api",
    "text_counter": 240,
    "type": "speech",
    "speaker_name": "Kitui Central, WDM-K",
    "speaker_title": "Hon. Makali Mulu",
    "speaker": {
        "id": 1955,
        "legal_name": "Benson Makali Mulu",
        "slug": "benson-makali-mulu"
    },
    "content": "expenditure side is already approved by the House. To some extent, we are in a situation where we have approved expenditure, but we are yet to approve how the resources will be raised. As we move forward, I think it will be important, through the Chairman of the Departmental Committee on Finance and National Planning and his Members, to advise this House how we can have a situation where we can pass the Finance Bill the same time with the Appropriations Bill because in case we do not approve this Bill, it means the projected Kshs30 billion will not be achievable. This will make the situation worse in terms of budget deficit bearing in mind that we passed the Division of Revenue Bill yesterday. As a result of that, we created an additional Kshs6.5 billion which is not factored in the budget. It means that we have a lot of work to do as a House to assist the National Treasury to see how to raise the funds. That is why, to some extent, I want to take a bit of time to explain a number of issues, so that Members can get to know what is in this Bill. There are some good things, as people have said. However, there are things which are somehow discouraging. We need to bear in mind that taxation is always a good evil anywhere in the world. Nobody wants to be taxed, but we must be taxed for the country to grow. We have no choice. People must be taxed. Companies must be taxed. When you hear lawyers trying to bring up issues, these issues will affect a number of sectors. That is why the Finance Bill, by design, is a Bill which will amend existing Acts of Parliament. Unless you do that, you might not be able to raise the money. Let me say something on the issue of the Capital Gains Tax. One of the principles of taxation is what we call progressive taxation. That is where you tax the rich to empower the power. What is happening in the Capital Gains Tax here is exactly that good practice. We are increasing the Capital Gains Tax from 5 per cent to 12.5 per cent. It is not every Kenyan who buys a house. It is not every Kenyan who buys and transfers land. These activities mostly belong to the rich of this country. There is no harm when you tax the rich to improve the lives of the poor through construction of roads, putting up health centres and all that. To me, even though the increase seeks to be higher, I think it is in line with good practice in taxation. The issue of withholding tax, which is being reduced from 6 per cent to 2 per cent, is also very good. We are now providing more cash to those who are paying VAT, so that they can run their businesses, but at the same time be able to achieve the initial objective of this law. The initial objective was to make sure that those who are providing goods and services to the Government do not avoid paying taxes. So, when you retain the 2 per cent, it will be known that you have worked for the Government and follow up to pay the remaining 14 per cent will be easy. It is very encouraging to see that it is moving from 6 per cent 2 per cent even though I would not mind even if it moved to 1 per cent. At the same time, let us bear in mind that the good thing with the withholding tax is that it is collected by an agency appointed by the Government and passed to the Kenya Revenue Authority immediately. So, you do not wait for long before you get the money."
}