End this taxation craze, it’s doing the country no good

By Ababu Namwamba
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To tax is a sovereign prerogative, a constitutional fiat inherent in government. To pay tax is a civic imperative incumbent upon every citizen, one acknowledged even by Christ, in Mathew 22:21, “…render to Caesar the things that are Caesar’s…” Indeed throughout the history of organised society, taxation has always been a defining nexus between ruler and subject.

The primary anchor for taxation is legitimacy of government itself, as illustrated by the immortal “no taxation without representation” slogan 750s-60s that capsuled a core grievance of the British colonists in the Thirteeen Colonies, one of the major causes of the American Revolution. Many in those colonies believed that not being directly represented in the distant British Parliament, any laws it passed taxing the colonists (such as the Sugar Act and the Stamp Act) were illegal under the Bill of Rights of 1689. The phrase captures a sentiment central to the cause of the English Civil War, as articulated by John Hampden: “what an English King has no right to demand, an English subject has a right to refuse.”

But even where legitimacy of the sovereign is undoubted, how government casts the taxation net must be seen to be manifestly fair, just and reasonable. History is replete with examples of regimes that have crumbled for taxing citizens beyond limits of the bearable. Niccolo Machiavelli, in The Prince, warns rulers against “being rapacious”, and urges that a ruler “…ought to encourage his citizens peaceably to pursue their affairs, whether in trade, in agriculture, or in any human activity, so that no one will hesitate to improve his possession for fear that they will be taken away from him, and no one will hesitate to open a new avenue of trade for fear of taxes…(and) reward those who do these things and those who seek out ways of enriching their city or state.”

Simply put, taxation must aid not stifle commerce, wealth and wellbeing of state and citizen. This thinking is as relevant today as it was in Machiavelli’s 16th century Florence. But it is one that seems entirely lost on both our national and county governments. A visitor to Kenya today would be forgiven for imagining that there is a cutthroat nationwide competition for “the weirdest and harshest taxation measures ever!”

County governments are literally running amok, taxing everything in sight. From mulembe chicken in Kakamega to departed souls in the morgues of Kiambu, the taxables list would be hilarious, if it was not so cynically tragic. And it all appears to be rooted in bigoted budgeting and the misconception that devolution must be accompanied by increased taxation.

But Kenyans did not crave devolution to multiply their already unbearable burdens. No. The desire was exactly the opposite: to soften the pinch, by ensuring that services are affordable, accessible, efficient and reliable.

There is growing apprehension that soon even sunshine, rain and the air we breathe will be taxable! If ever there was a threat to devolution, this silly taxation craze is it.

National government is doing even worse. Having failed to balance the books and catalyse growth, the Jubilee regime has resorted to the lazy measures of layoffs and tax misery. It is a crying shame for a coalition that promised millions of new jobs and double digit growth to latch onto retrenchment and crazed taxation. Not content with taxing essential foodstuffs that has taken the cost of living through the roof, they are now hounding athletes, Kenya’s premier global brand.

As Minister for Sports, I made it clear that you do not kill the goose that lays the golden egg, and jealously protected our athletes from tax measures amounting to demoralising double jeopardy. These national heroes, who in just minutes on the track market Kenya better than any agency ever could, pay 30-35 percent of their earnings to the host country, 15 percent to the agent and 10 per cent to the manager.

If UhuRuto take another 30 per cent, what is left? Rather than milk Kenyans dry, seal those loopholes that aid massive tax evasion, go maximise the stock exchange revenue streams, arrest runaway opulent spending in government and slay the monster of graft that continues to fatten right in the corridors of power!