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    "id": 1073226,
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    "content": "funded by Japan, the standard taxation policy is that they provide the money that comes in in terms of goods or services, but they pay their taxes at home, and not here. This standard is also within the operation of the United Nations (UN) and others international organisations. The other thing I want to highlight is that if you look at the Schedule within the Report, most of these projects are roll overs of projects that started earlier. For example, the Olkaria 1, Units 1, 2 and 3 and the Mombasa Port project started in July 2017. Some of them are projects that begun in 2010 and 2012 when we did not have these legal requirements. Tax exemptions must be approved by Parliament. It was previously within the powers of the Cabinet Secretary to have the exemptions, but because of the constitutional changes that we have had, it now requires this matter to come to Parliament. We are basically rectifying what should ordinarily have been done, which had already been included in the financing agreement. The observation by the Committee that Kenyan companies doing business in Japan are not getting similar treatment is comparing apples with oranges because Kenya is not giving grants or concessional loans to Japan that would require that Kenyan companies supplying goods or services to Japan be exempted from paying Income Tax in Japan. If we were doing so, we would then ask for reciprocity. It is good for this position to be on record for future generations to know the rationale for doing this and not seeking reciprocity for the Kenyan companies. Hon. Deputy Speaker, this is a self-automating issue that we signed up for. We received the grants and the loans and we must, therefore, do our bit, which is basically to ratify the conditions of the loans and the grants so that we continue to receive goods and services from Japan without taxing those services or income earned from them. That is the only thing that makes sense for the Japanese in giving loans to Kenya. I am sure we will have several issues coming from other countries. With those remarks, I beg to support."
}