Taxes: State should not ignore citizens' concerns

Winnie Njeri a trader on-boarded to the Electronic Tax Invoice Management System (eTIMS) processes an invoice for her customer. [Wilberforce Okwiri, Standard]

The government's new tax proposals in the Finance Bill 2023 have raised concerns about the administration's sensitivity to the plight of its citizens. The cries by wananchi and vehement opposition to the tax measures puts the government in direct conflict with the people it is meant to serve.

Among the contested levies is the increase of value-added tax on petroleum products from eight per cent to 16 per cent. Increased tax will raise the prices for consumers and with fuel being an enabler of economic activities, this will have a ripple effect on many other goods and services. The proposal takes the country back to 2018 and the acrimony that ensued in Parliament when the VAT was implemented.