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{
    "id": 985487,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/985487/?format=api",
    "text_counter": 853,
    "type": "speech",
    "speaker_name": "Suba South, ODM",
    "speaker_title": "Hon. John Mbadi",
    "speaker": {
        "id": 110,
        "legal_name": "John Mbadi Ng'ong'o",
        "slug": "john-mbadi"
    },
    "content": "President, which today we want to give the Executive the legal authority to start implementing, is welcome. Many may ask why it is necessary to convene this meeting to approve the amendment of the change of VAT rate from 16 per cent to 14 per cent. It should be noted that the High Court, in the case of Okiya Omtatah Okoiti, whom we all know, versus the Cabinet Secretary (CS) in charge of the National Treasury and three others, Petition No.253 of 2018, declared the provision of Collection of Taxes and Duties Act. This allowed for tax measures to be introduced through a Bill prior to its enactment as an Act, to be null and void. In addition, the High Court stated that the Finance Bill of that year, that is, 2018 or any part or provision thereof, including on matters taxation, cannot be implemented before the Bill becomes the Finance Act after it goes through Parliament. In a nutshell, it is imperative for Parliament to pronounce itself on these tax measures, including these VAT law amendments and approve the same. This will give the legal effect and avoid any loopholes that might be exploited by anybody so that we do not have these laws invalidated. In adopting these measures, it is important to appreciate that all consumers, both individuals and businesses of taxable goods and services, will benefit from this initiative effective 1st April 2020. The reduced VAT rate will make taxable goods and services more affordable, a benefit to all consumers of goods and services. If implemented effectively, the two per cent reduction will go a long way in cushioning consumers. We need to put much emphasis on this. Forgive me for using such strong terms, but the business people in this country sometimes act as bandits. Whenever there is an increase in taxation, the business men and women are very quick to increase prices. However, whenever we come up with a legislation that is supposed to reduce the burden on Kenyans, the business people are very reluctant. They want to enjoy the very support you are giving Kenyans to make huge profits. This is not the time for business people to make profit. If you make profit out of these measures, you will be ‘eating’ blood money. I appeal to businesses to be considerate of our consumers. This is because, even these businesses will benefit from the reduction of VAT rate, which will help them have a better cash flow. In fact, one of the President's pronouncements, which I support is that the VAT refund that has been piling with the Kenya Revenue Authority (KRA) should be given back to the business people for them to be liquid at this time. What can be better than that?"
}