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Parliament Calls For 20% Tax Increase On Harmful Products Amid Funding Shortfall

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By Jamillah Oluka

In response to a looming reduction in donor funding, the Parliament health committee has proposed a significant measure aimed at bolstering revenue streams: a 20% increase in taxes on harmful products such as alcohol and tobacco. This move comes as part of efforts to mitigate the financial shortfall and ensure the sustainability of essential health programs across the country.

The recommendation, if approved, is poised to have far-reaching implications for public health and fiscal policy. By targeting products known to contribute to a myriad of health problems, including addiction, cancer, and cardiovascular diseases, the proposed tax hike seeks to not only generate additional revenue but also deter consumption, thus potentially reducing the burden on the healthcare system.

However, the proposal is not without its critics. Some stakeholders have raised concerns about the potential impact on consumers, particularly those from low-income backgrounds who may already be struggling to afford basic necessities. Additionally, questions have been raised about the effectiveness of taxation as a deterrent, with skeptics arguing that habitual users may simply absorb the increased costs rather than curbing their consumption habits.

Meanwhile, in a separate development, the scrutiny of diplomatic nominees for key postings abroad has brought to light a range of issues that continue to stir debate within parliamentary circles. Despite the approval of several nominees, including Abdi Aden Korio for Muscat, Oman, Lilian Tomitom for Lusaka, Zambia, and Kenneth Ng’ang’a for Abu Dhabi, UAE, concerns persist regarding their qualifications and suitability for the roles.

Of particular concern are nominees for critical diplomatic stations such as Washington DC and Los Angeles in the USA. David Kiplagat Kerich and Ezra Chiloba, despite facing questions about their integrity and diplomatic credentials, have been approved by the committee. The decision has sparked controversy, with some lawmakers expressing reservations about the nominees’ past service records and their ability to navigate complex diplomatic environments effectively.

As these deliberations unfold, stakeholders await further developments regarding both the proposed tax increase and the appointment of diplomatic representatives, mindful of the profound implications for public health and international relations in Kenya.

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