It is not fair at all to tax basic goods

Although taxation is one way of boosting cash inflow to the nation, it affects the economic status of the people when such levies are heavy.

Currently, the country is facing cash crunch, which has forced the Treasury to resort to widening tax brackets to plug revenue deficit.

The taxes on more goods will impact negatively on ordinary Kenyan and civil servants who earn peanuts.

As the new Excise Duty Act takes effect, Kenyans will be forced to pay more on products such as fruit juices, cigarettes, beer, liquor, soda, bottled water and wine. Duty on imported second hand cars and motorcycles has also gone up.

However, the Government should concentrate on reducing expenses that consume lots of cash.

Some of the ways the Government can use to increase revenue, besides tax, include opening the economy to foreign trade and investment, increasing employment and reducing salaries of top officials.

There is also need to invest in human capital through provision of education, which increases worker productivity. The Government should also avoid imposing unnecessary regulations and control on productive sectors.

Having huge government expenditure takes scarce resources that could be used for productive investment.

Members of Parliament and MCAs always draw undeserved sitting allowances. Earning allowances and salaries amounts to double payment.

Increased taxation means the Government is compelling low-income citizens to transfer large portions of their income to their upper income counterparts. This in turn will widen the rift between the rich and the poor which in turn would slow economic growth.