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Opinion : Reasons Why Fuel Prices and Taxes In Developing Countries Keep on Rising

The recent trend in increased prices of oil and fuels in the country has seen many people being hit hard by hard economic times taking into consideration that the majority are unemployed or have poor standards of living.

Especially Kenya which is a developing country has seen a drastic increase in taxes especially when general elections are nearing. This is accompanied by slow economical growth during the period as many investors speculate violence before and after elections hence tend to slow down their activities.

This has emerged in many developing countries around the continent and there had never been a solution despite no improvement in the living standards of the population. Some of the reasons that might be causing these according to my opinion are:

Most of these countries are heavily burdened with foreign debts that they try to recover the money by increasing taxes on items to pay back. This causes problems on the economy as the economical growth hasn't been empowered hence the cycle continues by them funding their projects through loans and payments is through taxes which is not sustainable.

Most African countries survive through donations and loans from developed countries in turn they increase their tax rates instead of making their economy expand to sustain their payments.

Some countries sustain their budget through increased taxes hence making the common mwanainchi feel the pinch they should try and limit their financial allocations to reasonable limits.

Content created and supplied by: Vansikoy (via Opera News )

African Kenya


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