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Friday, July 13, 2007

There's A Hole in the Budget, Dear Kimunya...


Has anyone given thought to the effect the multiple city-wide public smoking bans are having on Amos Kimunya's spending plans? Wasn't he categorical that a significant part of his recently read budget would be funded by so-called "sin" taxes on alcohol and cigarettes? His anticipated windfall may soon be going up in smoke.

3 comments:

bankelele said...

big time hole

Anonymous said...

Kenyans are going on as if they have never heard of the business cycle.
They extrapolate that 6.5% economic growth rate, 20%+ tax collections increases and 5% interest rate from here to eternity

But the wake up call to face reality, it will not be pleasant to see

jm said...

I doubt it ...

Demand for those goods is almost perfectly inelastic. Smokers will smoke, drinkers will drink; in spite of the ban and/or raise in taxes ... wait and see...