|H. 6 Rabi' II 1444||No: 1444 / 03 AH|
|M. Monday, 31 October 2022|
Capitalism is More of a Bane than a Boon for Humanity
As Kenya grapples with the accumulative debt of Sh.10 Trillion, President William Ruto has called all Kenyans to be tax-compliant. According to the President, the government collects Sh2 trillion and is targeting Sh3 trillion by next year. The President has urged Kenyans to make it a habit of always paying taxes to help in offsetting the debt the country has and free the country from debt. Currently, the government is paying more than Sh1 trillion to service loans.
Hizb ut Tahrir / Kenya wishes to expound the following:
The national debt taken from the world’s financial institutions and governments is ballooning by the year. Kenya currently needs to borrow Sh.900 billion to meet its financial needs, and that too is a temporary solution, which not only makes us subject to humiliating conditions but we are likely to fall in more debt leading to bankruptcy and therefore having debilitating consequences. It is crystal clear the humiliating policies, advised by IMF and the World Bank adopted by the government, put extra burden on the people.
In capitalism, the only main source of state revenue is taxation and borrowing. Taxing consumption and income translates to burdening the day to day economic activities of the ordinary citizens as indeed these are the basic elements of their livelihood. Kenya, as is the case in all capitalist regimes, has what is referred to as a source-based taxation system which basically attempts to levy taxation on all income accrued in or derived from the country irrespective of the residence of the income earner. Apparently financial budgets under capitalism make the bulk of the expenses dependent on excessive taxes while its deficit compensated from loans and grants.
We say, the effort exerted currently by the Government will eventually create more public debts hence adding more miseries leaving the population in perpetual poverty.
Islam is the only choice for liberating humanity from these perpetual economic miseries and failures as it guarantees all public properties to the service of the public finance. This aspect primarily eliminates taxation as the main source of revenue hence leaving the consumption and income driven only by the market forces (Demand and Supply). In this regard, the Khilafah (Caliphate) State upon the method of the Prophethood is the only sovereign economy detached from all colonial economic bondages of the western powers.
Media Representative of Hizb ut Tahrir in Kenya
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