Why do we pay taxes?
I recently have
been introduced to the world of tax. I have always wondered how the laws and
decisions made by those Oga at the top affect us all. I thought I had an idea,
but did I?
As I was
asking myself endless questions, I decided to pen them down, so that they don’t get clogged in my head. Also, I am no expert. The questions/arguments/thoughts
that I put here are not different from the ones that Mama Mary at the next
street would have. I have one advantage though. In my circle of work, there are
people who understand money and tax issues. So, I will be asking them as I
write, equally, I will share the responses with you.
For 15 years
now, every month without fail, 30% of my pay has been deducted and put in the
tax/ government coffers. Except for a few months at the beginning of my career
in radio, the finance officer/ aka the
in-charge of everything would remove 30 %, this time though, it went in
his pocket.
So, first things
first. Why is it that we do not hear enough stories about taxes? About the
purpose of it, why 30% and what is VAT? Why do I need to pay extra? About
agreements that countries sign with each other that will either bring in tax
money or take it away? Why is it that we are not told about those decisions and
how we should also follow up? A qui profite le silence?
I do not cook on
Thursdays. Mama Mary sells me good fish and mboga every Thursday evening. While
she was preparing my order, I took advantage of our small talk to ask a few
questions. I asked her if she pays taxes. She said she does so. Religiously! I
then asked her what she thinks that money is used for. She looked at me as
though to say, should I know what that money is for? Isn’t that the job of
those men and women in tall buildings?
How many of you
will admit you have no idea what your money is used for? do we all agree, that you,
Mama Mary and I should be aware of the whereabouts of that cash?
Also, don’t you
all think there should be a way for Mama Mary to follow up, get information and
to express her frustration if not happy with the work that has been done? and,
someone to be answerable? this is only fair.
Why do we pay taxes?
To finance
development.
That’s right.
The money that the government collects is meant to allow it to offer the
services that we all need (I insist on ALL), to socially provide for the less
fortunate, to support and finance common resources. Water, electricity,
different infrastructure, security, etc. Sadly, in many cases, our governments collect taxes to pay debts that were never used to finance our collective well being. The plan was
to borrow to build a road, so that you can easily commute from home to work and
bring in more tax, which in return will finance more development, which results
in better quality of life. What do you think happens when the officer in charge
decides that he/she’d rather build his/her own house and invest the rest for
his/her family vacation, than giving you the road you paid for? Your transport
will be expensive and in most cases unavailable, the cost of services like
access to health care will look unreal. Basic goods you need to survive will be
charged as though they were bought from a five star hotel. How would this end?
And who wants to end like that anyway?
Can we now get
justice for Mama Mary? Why is it that the government would expect so much from
her small restaurant that sells traditional food, but work out an arrangement with
multimillion corporate companies_one that produces and sells drinks, (call it
Akola) and another one that sells us shoes (call it Nickila)_to give them 10
years without paying a cent? Or better yet, allow the corporations to work from
your country, use your infrastructure, locally sell and export their good, but
declare their taxes somewhere else? Who came up with this system?
I have heard so
many Africans praising their Gov for either constructing a road or a
hospital or making education and health care free. Well, congratulating Gov officials for
work well done is commendable, but we should not forget to remind them that
they are doing what they are supposed to do. All the work that is done today is
not a product of some magic, it is the use of our money. In fact, we should be
in position to ask for better infrastructure, better schools, better Education
systems, better health facilities, stronger security systems, as long as we pay
taxes.
Under no
circumstances should we tolerate misuse of our money. Corruption, tax
avoidance, money embezzlement etc. On this list , I will just add bad services
from government officials and favoritism! Honestly, my money pays you, I should
get better.
What should we
do?
1.
Paying taxes is your duty.
Knowing how it is used is your right
2. You have the authority to
challenge the policy makers and the executive about the use of the money
3. The Government owes you better, it is not charity or favor. This includes transparency and
accountability
4.
Media should talk about this
more, as in... seriously!
5.
We can make this list long. Add
yours.
Your tax is an
investment. Be serious with it. Stay woke.😉😉 .
Wooow! You're a really strong woman with a strong mindset! And this is really good that I wanted to cry tears of joy! About the statement, you really raised some really good questions like people being aware of how our taxes are raised and I would say it's the consequence of having so many illiterate people. They had this question for so long but it was hard for them to raise those problems to the society. Here when we support statements like this, government officials are forced to respond. Some of those questions I already know their answers because I was fortunate to learn entrepreneurship in high school. Which brings me to the point that we should have time to share our knowledge tips with our neighbours after #umuganda so that they don't get confusionsome like these. About tax avoidance it is legal and smart and profitable to young entrepreneurs, I think you meant tax invasion. They are different.
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