ECONOMIC CRISIS:IDEAS FOR THE TAXMAN

There was a lot of brouhaha that followed after the energy regulatory body (ERC)in Kenya announced that fuel prices would rise.This however was quickly followed by a reduction on tax on kerosene and diesel of 30% and 20% respectively.


Kerosene is the major cooking fuel in a majority of Kenyan households especially in the low income bracket and the price of fuel determines transport costs not only for Kenyan workers but it affects food prices as well.

The Government responded swiftly in mitigating a crisis that was slowly brewing as civil rights groups had already planned for mass action to protest the increasing cost of living.

While appreciating the situation the Minister of Finance faces in trying to meet the targets set for this year with an upcoming budget,we also need to remember that ordinary Kenyans are facing an increase in the cost of living yet their wages and salaries remain the same.The situation is the same for all Kenyans across the board whether in formal or informal employment people are feeling the pinch of the current crisis.

The government hover does have some avenues it can pursue to make sure that the ongoing economic crunch.First of all would be to ave MP's salaries taxed,it would make sure that at least KRA coffers received the much needed revenue to reduce the deficit that they are definitely going to record this quarter.It would also give our honorable members some good PR in the eyes of the mwananchi by walking a mile in the shoes of the tax payers.

We all know of that our Ministers and MP's travel a lot in the course of their duty and most of the time it is business class.How about them going economy for the duration of the crisis.Some extra pennies in the exchequer would make honorable Uhuru smile.

A lot of tax payers money goes towards fueling the fleet that transports our Ministers and state officials to government functions where they arrive in style as befits their position.For just a few weeks they can endure having to carpool when they have to travel to these and other functions where government officials are needed- few shillings more added to Uhuru's purse.