MPs vote to speed up VAT amendment Bill

The bid to reduce the cost of living by exempting more basic goods from taxation received a boost Wednesday after MPs voted to speed up its progress through the National Assembly.

With backing from the House Business Committee, MPs had been asked to shorten the period within which the Value Added Tax (Amendment) Bill would be handled by a committee from 20 to eight days.

They agreed without debate, meaning that the Bill sponsored by John Mbadi (Suba, ODM) can be taken through the Second Reading on Tuesday next week and the Third Reading before the House breaks for Christmas.

Majority Leader Aden Duale told his colleagues as he initiated the proposal backed by the House Business Committee that the main challenge between now and Thursday next week is that Bills that haven’t gone through the Second Reading would lapse at the end of the session.

House rules state that a Bill that hasn’t gone through the Second Reading at the end of a session is considered to have lapsed, meaning it would have to be reintroduced afresh and go through the four stages before the First Reading.

CUSHION THE POOR

Mr Mbadi has been at the head of the proposal backed by his Cord party to exempt more goods from the Value Added Tax bracket, which would ideally reduce their cost and thus cushion the poor.

“The reason for asking this House to reduce the referral period for this Bill is because the period we have between now and (December) fifth when we are breaking for recess is such a short time,” said Mr Mbadi as he explained why he is in a hurry to have it passed.

“The relevance of this Bill would only be realised if it is enacted into law and the people of Kenya start benefitting from reduction of costs of certain basic commodities which I have proposed,” he added.

Mr Matura said the MPs’ approval of the request means the Bill can be taken through the Second Reading as soon as possible.

Mr Mbadi has requested to have it put on the order of business for Tuesday, meaning it can be passed before the break begins on Thursday evening.

The proposed law seeks to exempt infant milk, processed milk, mosquito and fishing nets, insecticides, fungicides and herbicides from VAT.

Other goods and services proposed to be exempted from taxation include vegetable, newspapers, journals, postal and water drilling services.

If successful, the amendment will also exempt electricity supply to households and services offered by the Rural Electrification Authority.