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{
    "id": 199765,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/199765/?format=api",
    "text_counter": 292,
    "type": "speech",
    "speaker_name": "Dr. Oburu",
    "speaker_title": "",
    "speaker": {
        "id": 194,
        "legal_name": "Oburu Ngona Odinga",
        "slug": "oburu-odinga"
    },
    "content": "Mr. Temporary Deputy Chairman, Sir, the change from the selling price to physical characteristics has the effect of actually encouraging inefficiency. This is because when you sell at a lower price, you are actually still making money. If you can afford to sell your cigarettes at a lower price and you still make money, that means you are more efficient than the 4484 PARLIAMENTARY DEBATES October 16, 2007 person who is selling at a higher price. It is only at that higher price that he makes money. Mr. Temporary Deputy Chairman, Sir, therefore, by changing to the use of the characteristics of cigarettes, we are, first of all trying to kill the local industry. Secondly, we are encouraging inefficiency. This is because if the multinationals, who are actually quite appealing for this change and have tried to convince us to agree with the Minister, are efficient, then they should also sell their cigarettes at a lower price and then attract lower tax. There is no reason why they cannot sell their cigarettes at a lower price and also attract lower tax. Mr. Temporary Deputy Chairman, Sir, therefore, we, as a Committee, support this amendment. We agree with the Minister on the taxation. He should increase the tax as he wants, but he should not change from imposing tax based on the selling price to physical characteristics of the cigarettes."
}