It is one that is brought up with good intentions but has harsh repercussions.
The government has set up a way to cater for the poor if this bill is passed into law. They are offering them funds to help deal with the rise in the cost of living due to the Value Added Tax on basic commodities like maize, wheat flour, sanitary towels, processed milk and others.
There are over 400 items in the present constitution that are zero rated. It could be noted that those products could help raise the deficit needed by the 2013 budget.
It is true that the current proposed bill will cut across all social classes.Whether it is implemented or not all the people in the country will be affected. The lower class will feel the pinch more because their income is in the lower side. Most of them are living below a dollar a day. That means that even with the government opting to offer funds to offset the imbalance by offering subsidies the poor will still be at a disadvantage.
To solve the problem the Government could remove the tax on the basic commodities. In turn they could tax other products like those in the Jua Kali sector. That sector produces a lot of revenue and could help raise the deficit required to balance the books.
Some people are putting across that this bill is a preposition of the International Monetary Fund. That is not the issue at all. We could use the bill to our advantage and end up independent.
The parliament should pass the bill but after a serious deliberation on what to amend.
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