Friday, June 26, 2015

Our MPS could have done better on unpopular tax

 
In Summary
Off camera, though, they often behave as if the the word “conscience” does not exist in their vocabulary. They carry themselves as people who have no feelings and no idea what is right and wrong. This is exactly what happened during the debate on the 2015/16 budget.

Our MPs are quick to take advantage of opportunities to get free publicity, and they like nothing better than the fact that the voters are watching them live on television. With that in mind, they come up with all manner of statements aimed at soothing the hapless wananchi and entice them into believing that their representatives have the people’s welfare at heart.
Off camera, though, they often behave as if the the word “conscience” does not exist in their vocabulary. They carry themselves as people who have no feelings and no idea what is right and wrong. This is exactly what happened during the debate on the 2015/16 budget.
Virtually all MPs opposed the government’s intention to collect an additional Sh100 (Sh50 as fuel levy plus another Sh50 as fuel and road tax) on every litre of the already heavily-taxed petrol and diesel. Pretty much like chameleons, the MPs unanimously endorsed the budget without changing a single word. What made them change their minds so abruptly is something only their political parties can explain. Finance minister Saada Mkuya’s reasoning that the levy was intended to boost the Sh276 billion kitty for rural electrification was apparently not good enough to stop our well informed MPs defending what they supposedly believed to be right.
The harsh reality is that fuel costs translate into additional transport charges. It will result in a hike in the cost of living for the low-income earners who, according to Ms Mkuya, will be the major beneficiaries of the augmented taxes on the petroleum products. The minister’s move effectively amounts to giving with one hand and taking away with the other.
If our MPs were really concerned about the situation of rural Tanzania, they would simply come up with ways of raising the revenue the right way—from various firms, including those owned by their political and business associates, instead of milking honest taxpayers dry.

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