There is little harm in more citizens carrying this tough tax burden

Sometime over the holidays I went shopping in one of the many retail micro-outfits that define Nairobi’s informal sector. In the 30 minutes that the dynamic lady who was managing the not more than 2m X 7m “shop” took to put together my products, I was amazed by the amount of business transacted in that small space. Most of it attracted no receipts and although many of those products were probably vatable, no VAT receipting was taking place. There was no question in my mind that this business, and the numerous other micro-shops in the expansive neighborhood, was making money. But clearly, the government was getting no tax benefit from these businesses.