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budgetSpeech2013-eng.pdf

budgetSpeech2013-eng.pdf

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Published by elinzola
Kenya Budget 2013 speech
Kenya Budget 2013 speech

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Published by: elinzola on Jul 02, 2013
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09/27/2013

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42.1 Honorable Speaker, improved investor confidence and emerging
domestic entrepreneurs in foreign exchange earning sectors have
improved capacity to mobilize their funding requirements from
global financial markets. Therefore, I propose to allow corporate
entities to borrow up to US$ 10 million per annum over a next 3

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years without having to obtain Exchange Control Department
approval. I also propose to permit licensed commercial banks to
borrow up to US$ 50 million each year for three years without the
approval from Exchange Control Department.

42.2 Honorable Speaker, permitting transactions to those engaged in the
supply of goods and services to tourism and foreign businesses to
transact in foreign currency and allowing them to retain a part of
their earnings would be beneficial for the development of such
sectors. Hence, I propose to permit all such service providers to
accept foreign currency provided such earnings are deposited in the
banking system within 7 working days of such transactions. I also
propose to permit all residents to maintain Foreign Exchange
Earners’ Accounts in currencies of their choice in lisenced
commercial banks to deposit foreign exchange earnings from services
provided to non-residents.

42.3 Honorable Speaker, amendments were introduced to legislations in
Parliament in 2009 as per one of my Budget proposals, to bring about
a new business life particularly to those who have lost title
documents and other assets during the conflict, by waiving off their
taxes and other liabilities prior to December 2009. In the background
of emerging development scenarios, I propose to amend such
legislative provisions to enable those who were so affected and
particularly those who live abroad to take a long term view in Sri
Lanka by raising the prescribed limit for exemption from tax and
exchange controls, to Rs. 300 million. Providing a further a window
to facilitate the transfer of foreign savings of resident Sri Lankans as
well as expatriates, I propose to permit such transfers to investments

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in instruments up to US$ 5 million to be done without the approval
from the Exchange Control Department. I also propose a 3 year tax
holiday period for such investment. The prevailing tax rules restrict
the movements of Sri Lankans as they are required to be absent from
the country for 365 days to become non-residents. In order to
encourage Sri Lankans living abroad to move freely with their
savings made overseas and engage in residential activities, I propose
to reduce this requirement to 183 days. These arrangements will
provide a mechanism to overcome the difficulties in exchange
control and taxation areas for those who left the country during the
conflict and propose to return to settledown.

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