MPs Convene Retreat to Tackle 7 Hotly Debated Clauses in Finance Bill
With only three days remaining before the controversial Finance Bill, 2023 returns to Parliament for its second reading, the National Assembly’s Finance Committee has whittled down the eight-day public participation hearing to the seven most contentious clauses.
Concerning the mandatory 3 percent housing levy contribution from employees and employers, the committee desires, among other legal concerns, the establishment of a legal framework to establish how the funds will be collected and utilized.
The committee is considering reducing the 16 percent VAT on petroleum products while maintaining the existing 8 percent deduction.
Regarding the requirement to submit a 20% deposit of the contested tax amount to the KRA before filing an appeal, the Parliamentary finance watchdog is considering eliminating the clause.
The clause requiring the payment of withholding tax to KRA within 24 hours is under consideration for repeal by the committee.
The legislators may choose to either reduce the 15 percent digital tax on content creators to 5 percent or eliminate it.
The zero-rating tax on the manufacture of pharmaceuticals and fertilizers is likely to be changed to an exemption for pharmaceuticals and fertilizers.
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Most likely, the 7.5% income rent proposal will be increased to 10% or higher in the new changes.
During his address to farmers at the Coffee Conference in Meru County, Vice President Rigathi Gachagua expressed confidence that legislators from the region will pass the Bill in Parliament, as it was crucial for the agricultural and industrial development of the region.
“It is true, ukienda pande mbali mbali watu wanataka maendeleo…na hii maendeleo inahitaji pesa. Na sasa iko kwa hii Finance Bill,” he said.
Speaker Amason Kingi, on behalf of the Senate leadership, urged the National Assembly’s Finance Committee to carefully consider the opinions of Kenyans during public participation sessions on the Bill, which took place in Mombasa.
“The ongoing debate on the Finance Bill is healthy…it demonstrates that Kenyans are concerned with their financial situation.” Speaker Kingi stated, “We urge the Finance Committee to consider the contributions from Kenyans and urge legislators to carry out their legislative duties on the bill responsibly.”
Senator Stewart Madzayo, leader of the minority in the Senate, stated, “Members of Congress should have the best interests of Kenyans at heart. The following week, members of parliament are expected to carry out their responsibilities objectively.”
The committee led by Kimani Kuria will complete its report on Saturday before submitting the Bill for its second reading on Tuesday.
MPs Convene Retreat to Tackle 7 Hotly Debated Clauses in Finance Bill
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