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"id": 97992,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/97992/?format=api",
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"speaker_name": "Dr. Oburu",
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"legal_name": "Oburu Ngona Odinga",
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"content": "Mr. Deputy Speaker, Sir, the point we are making here is that we have come into a common market with five East African countries. In the five East African countries, there is only Kenya which produces about 300,000 tonnes of wheat. Tanzania produces very little wheat. Uganda, Rwanda and Burundi do not produce wheat at all. Though there was a threshold of 35 per cent import duty agreed earlier, there was an agreement that there would be concession for countries which are not producing wheat and, therefore, would like to be given freedom to import wheat duty free. Therefore, when Rwanda and Burundi joined the community, they applied for that remission. They were given 35 per cent. So, they have been importing their wheat at the rate of zero. Uganda also did the same. Tanzania has been importing at 10 per cent. Kenya was importing at 25 per cent, but we were given a remission of 10 per cent. Mr. Deputy Speaker, Sir, because of the East African Common Market which came into being from 1st July, it was thought that it would encourage smuggling if there were different rates in different countries. Therefore, the Ministers of Finance from the East African Countries sat down and agreed that there will be a uniform rate of 10 per cent. Kenya had to reduce from 25 per cent to 10 per cent. Rwanda, Burundi and Uganda increased from 0 per cent to 10 per cent so that we have a uniform import duty. The effect of not doing that is that the zero-rated wheat which will be imported in Uganda and Tanzania will be much cheaper. That wheat will find its way into Kenya and still kill our market. The other point we want to make is that it is not just about the farmers but also the consumer. If you raise the duty on wheat, of course, the millers will pass on that cost to the consumers. So, the consuming public which forms the majority will also suffer. So, everything else must be looked at. Mr. Deputy Speaker, Sir, the Question was too long and that is why---"
}