Dear Editor,
Human needs are basically the same, that is the need for food, shelter and security. This is why all responsible governments need to provide both the institutional framework and the enabling environment for people, especially the working people to satisfy their basic needs.
In addition to basic needs there are also what is referred to as higher order needs, such as the need for education, health and recreation. There is also the need for citizens to enjoy other freedoms such as freedom of expression and at a more fundamental level, freedom to elect a government of their choice through free and fair elections.
These are the main pillars of a democratic society where every individual regardless of race, religion or political affiliation feels that they have an equal chance to succeed to the full limit of their potential.
The government has a duty and a responsibility to create an enabling environment for the creation of wealth and for that wealth to be distributed in a fair and equitable manner. This has to be done through investment incentives, fiscal and monetary policies inclusive of a progressive taxation system where those who earn more should be taxed proportionally more rather than a flat deduction of one third of gross earnings as is currently the case.
The non-taxable income threshold should be increased to allow for more disposable income for those in the low-income bracket. Further, the laws should be amended to allow for all incomes to be taxed regardless of the office which one holds. It is unfair to tax those whose income is low while some high income earners are exempted from paying taxes.
My view also is that the value added tax should be reduced to around ten to twelve per cent and compensatory measures explored to make up for the revenue shortfall, such as increasing the tax base to capture the thousands of self-employed professionals who escape the tax net or pay taxes way below their earnings.
I think the income gap is too wide and measures needed to be put in place to increase the purchasing power of those at the bottom of the income ladder.
Yours faithfully,
Hydar Ally
