Financial Burden

News:

Kenya: After the financial bill was passed and adopted by the State, the tax policy drastically raised all spectrum of the economy. This adoption has produced strong opposition and especially controversial on the 8% tax increase on VAT on fuel products, 1.5% tax house levy on income, also 1.5% tax on digital content and more.

Comment:

The opposition from Azimio La Umoja and other individual activists has only ended in opposing the adoption without tabling any alternative, indicating the bankruptcy of the capitalist system in relieving people of this huge financial burden. On the hand the political opposition lucks sincerity in fighting for the interest of the people but rather merely for cheap political significancy.

Taxation as the main source of revenue of any Capitalist State leaves the Kenya Kwanza government with no choice especially after a huge national debt hitting almost 70% of the GDP. To make matters worse all public properties like electricity, oil, etc., are owned by private corporations whose aim is to make profit from misery of the people. High tax and privatization of public properties has indeed made public utility bills a financial burden with no mercy at all.

Taxation in essence discourages production, the very solution that capitalism believes in due to scarcity of resources. This raises the question why tax the solution to an economy that is the basis of livelihood? The flaws in the system make it in capitated in managing the affairs of the people. Why tax income that has been labored to contribute to the GDP? The answer is simple all that is public has been made private leaving citizens to the mercy of corporations whose sole aim is PROFIT.

As much as Kenya Kwanza administration believes, huge tax collection is the solution, the result on ground is different from gloom of political rhetoric as unemployment will increase, poverty will increase also loan default too will rise as financial burden will make it difficult for individuals to pay and honor the debt. This in turn will distort capital market as most will hoard cash in fixed deposits rather than invest in the market. Commercial transactions as unit of economy will hit low many will reframe the expenditures to attains basics and payments of huge utility bills.

Islam, the mercy from the Creator of man, life and universe, stands as historical prove of how humanity was elevated from the shackles of enslavement of usury and political entities of their times to high functional society that eradicated poverty and made livelihood easily attainable without restriction from the Khilafah (Caliphate) State upon the method of the Prophethood but rather became the main facilitator to honorable livelihood.

Allah (swt) says:

[مَّا أَفَاء اللَّهُ عَلَى رَسُولِهِ مِنْ أَهْلِ الْقُرَى فَلِلَّهِ وَلِلرَّسُولِ وَلِذِي الْقُرْبَى وَالْيَتَامَى وَالْمَسَاكِينِ وَابْنِ السَّبِيلِ كَيْ لَا يَكُونَ دُولَةً بَيْنَ الْأَغْنِيَاء مِنكُمْ وَمَا آتَاكُمُ الرَّسُولُ فَخُذُوهُ وَمَا نَهَاكُمْ عَنْهُ فَانتَهُوا وَاتَّقُوا اللَّهَ إِنَّ اللَّهَ شَدِيدُ الْعِقَابِ]

“Whatever spoils from the dwellers of the township Allah has bestowed on His Rasool, shall belong to Allah, His Rasool, Rasool's relatives, and to the orphans, the needy and the travellers in need; so that it may not become the property of the rich among you. Whatever the Rasool gives you, take it and from whatever he forbids you, refrain from it. Fear Allah; for Allah is stern in retribution.” [Quran 59:7].

Written for the Central Media Office of Hizb ut Tahrir by
Ali Omar
Member of the Media Office of Hizb ut Tahrir in Kenya