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"content": "v. Further strengthening financial systems for sustainable development Hon members, I have proposed tax measures aimed at facilitating development of infrastructure facilities such as railway and energy in order to reduce the cost of transport and energy and make our economy competitive. Hon Members, rail transport is the most economical mode of transportation for freight and passenger. However, our railway facilities have not received much incentives compared to other transportation infrastructure. In this regard, I propose to exempt Import Duty on importations of items used to facilitate railway operations in order to support the expansion and development of the railway network in the region. I have, in addition, proposed amendment to the Customs and Excise Act to introduce a Railway Development Levy of 1.5 percent on all imported goods, in order to mobilize additional Kshs15 billion to fund construction of a standard gauge railway line from Mombasa to Kisumu. This project, as I have already stated, when completed in three years’ time, will reduce significantly the cost of freight, thereby saving businesses huge resources."
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