InnovateGuy wrote:There is a lot of misinformation about the VAT bill 2013. I would like to lay the blame squarely on the media for misinforming the public.
The first misconception is that the VAT bill will increase the cost of basic commodities for the common man. This is not entirely true. Most of the poor do not rely on processed foods. At least those who rely on processed foods can afford them. Again, some of the goods that are zero rated are not exclusively used by the poor people. Therefore, once the tax is removed, there is a huge number of people who will enjoy the "subsidy" while they do not form part of the poor group that should benefit from the "subsidy."
@innovateguy, you sound very much like the economic secretary, geffrey mwau, on citizen tv yesterday. When asked whether or not prices would go up, he went round and round blabbering in an incomprehensible manner that the poor will be cushioned through programs. Janet mbugua asked him three times whether pads prices would go higher and everytime he skived the question.
President Kibaki had a very resourceful national social economic council that helped him put the country on the path of progress. Seems like Kenyatta II has done away with that team. One gets the feeling there are people setting up the president to fail.
Am not an economist but when KAM, KEPSA and all the leading tax consultants from the big 5 audit firms warn about the vat bill, i know who to believe.