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{
    "id": 985525,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/985525/?format=api",
    "text_counter": 891,
    "type": "speech",
    "speaker_name": "Kiminini, FORD-K",
    "speaker_title": "Hon. (Dr.) Chris Wamalwa",
    "speaker": {
        "id": 1889,
        "legal_name": "Chrisantus Wamalwa Wakhungu",
        "slug": "chrisantus-wamalwa-wakhungu"
    },
    "content": "are poor. We cannot discriminate in terms of pricing because of Members of Parliament whose population is statistically insignificant. If you give the scenario of a factory, there are raw materials that attract Value Added Tax (VAT) that go into that factory. If you reduce VAT from 16 to 14 per cent, you are reducing the production cost in that factory to enable the employer to stay afloat so as to continue providing employment to Kenyans. The President has many advisers, and an analysis must have been done for him to arrive at this decision. We must understand the application of VAT as it is not just directly to the product, but at times it is an input in the production process of the value chain. As we move forward, we want to caution some unscrupulous business people. For one reason or the other, the trickledown effect of 2 per cent will not be felt. We are calling upon the police to be vigilant because once this is done, we want to see prices of essential goods going down. We must monitor so that people do not make abnormal profits. This benefit must trickle down to the common mwananchi . Hon. Speaker, the issue of giving rations is good, but it has its own challenges - logistical and discriminatory. We are here to salute the President for reducing VAT, but we want to call upon the KRA to monitor this in its own way. Article 118 of the Constitution is important when it comes to public participation so that we can hear the opinions of other people. As we move forward, in future, we need to have purposive sampling whereby Parliament can write to some relevant authorities like the Institute of Certified Public Accountants of Kenya (ICPAK). In this case, if such an institution was given an opportunity, it would have written an authoritative paper to inform the House. We appreciate that this House has brains across the board – from economics to the accounting field – but the Kshs49.5 billion that we will lose is a double-edged sword that needs a delicate balance. It is from taxation that governments get money to run their programmes. During this period of COVID-19, there should be extra ordinary measures to safeguard Kenyans. As we move forward, to ease the burden, the Government should talk to China to undertake a restructuring of the debts owed to her by Kenya because we are told that the Coronavirus pandemic originated from there. This is a global pandemic and Kenya alone cannot manage it. It is a global idea that we must all come together to find the best way forward. I wish VAT would have been reduced from 16 per cent to 12 per cent. Let us work with the 2 per cent reduction. If in future we realise that this thing cannot be managed, we can reduce it further – particularly on essential goods. Regarding fuel cuts across the industry, there are many levies when it comes to fuel. If we focus on reducing taxation on fuel, it will cut across production and other essential services. I do not have much to add because I know my time is up, but I would like to salute the President and support the Motion. Thank you and God bless you."
}