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.
big time hole
ReplyDeleteKenyans are going on as if they have never heard of the business cycle.
ReplyDeleteThey 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
I doubt it ...
ReplyDeleteDemand 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...