Common use of Financing Taxes Clause in Contracts

Financing Taxes. The use of any proceeds of the Grant to pay for Taxes levied by, or in the territory of, the Member Country on or in respect of Eligible Expenditures, or on their importation, manufacture, procurement or supply, if permitted by the Legal Agreements, is subject to the Association’s policy of requiring economy and efficiency in the use of the proceeds of its credits and grants. To that end, if the Association at any time determines that the amount of any such Tax is excessive, or that such Tax is discriminatory or otherwise unreasonable, the Association may, by notice to the Recipient, adjust the percentage of such Eligible Expenditures to be financed out of the proceeds of the Grant.”

Financing Taxes. The use of any proceeds of the Grant Financing to pay for Taxes levied by, or in the territory of, the Member Country Partner States on or in respect of Eligible Expenditures, or on their importation, manufacture, procurement or supply, if permitted by the Legal AgreementsFinancing Agreement, is subject to the Association’s policy of requiring economy and efficiency in the use of the proceeds of its credits and grants. To that end, if the Association at any time determines that the amount of any such Tax is excessive, or that such Tax is discriminatory or otherwise unreasonable, the Association may, by notice to the Recipient, adjust the percentage of such Eligible Expenditures to be financed out of the proceeds of the GrantFinancing specified in the Financing Agreement, as required to ensure consistency with such policy of the Association.”