The people of Kenya are paying a 16% Value Added Tax on all petroleum products in a move that defied parliamentary vote to delay the tax for two years. The implementation of the contentious 16% fuel VAT contained in the Finance Bill 2018 comes into effect after a five-year grace period that commenced on 2013. The tax hikes are alleged to be designed to fund a range of government development goals including universal healthcare and affordable housing.
We Hizb ut Tahrir / Kenya would like to expound the following:
This latest taxation is definitely a proposal from the International Monetary Fund (IMF) that has been piling pressure on Kenya to do away with tax exemptions as part of a wider plan to grow revenues, reduce budget deficits and ultimately slow down the debt pile-up.
The truth is that foreign-colonial states with their financial institutions are running Kenya’s economy behind the scenes while on the front we have figureheads taking the blame on their behalf. Therefore, through a whole host of capitalist policies, the Western colonialist with the open collaboration of the government is plunging the people into increasing economic misery. Kenyans have always struggled to make their ends meet but now increasing numbers find themselves challenged to procure even basic staples such ugali and rice.
The friction between the executive and legislature indicates the contradictions and fallacies in a democratic system. Additionally, capitalism is putting itself in conflict due to conflict of interest by fixing prices while at the same time calling for free-market policies which include the determination of price to be according to the fluctuations of supply and demand patterns.
It has come blatantly clear the government does not care about the interests of the citizens whom they allege to lead. Instead, what it means for better improvement in livelihood of its people is increasing the prices, placing difficulties upon them and widening the poverty levels. Taking overwhelming loans with citizens’ taxes as security to fund ‘air’ projects then in turn the fund is looted by the same government. In 2008 when the national coalition government was formed through the foreign pressure, life became very tough. Today 10 years down the line we have the so-called ‘Building Bridges process’ anchored on the same approach but on a different framework, which will cause further hardship on the life of the majority already poverty-stricken citizens.
We finally say the radical solution to this is not in demonstrations, instead, struggling for a system that looks after the people properly and treats them with kindness. A system that pleases the Lord of mankind and deals justly amongst them by the Ahkam (rulings) of Islam. A system if its people are hungry, then its rulers will precede them in hunger, and if the people are satisfied, the rulers will be satisfied after them. The Khilafah (Caliphate) established on the methodology of Prophet (saw) will guarantee citizens their genuine livelihood and would not tax them unless something of emergency occurs that is beyond the Khilafah’s means. Furthermore, the taxation will only take place on the rich who have surplus wealth.
Media Representative of Hizb ut Tahrir in Kenya
REF: 15 / 1439 AH
Tuesday, 24th Dhul Hijjah 1439 AH /
Tel.: +254 707458907
Email: [email protected]