Imposing tax on basic goods chokes the poor

Hitting the poor with new taxes will make their lives miserable. [Courtesy]

National Treasury’s plans to introduce taxation on essential commodities that were once exempted from tax will only serve to hurt low income earners. While Kenya is desperate to cut its budget deficit in the wake of piling pressure to put brakes on borrowing, additional taxes on commodities such as bread will be on the extreme.

Instead, government should heed proposals by international bodies such as the International Monetary Fund calling for a widened tax base.