Elizabeth R.Auma. K

Every time I find myself talking trade policy, instinctively I will always have a line like, ‘…..Government is committed to ensuring a conducive environment for trade’. This statement to the ears of the traders is exciting and reassuring. Yet the same government is committed to collecting taxes from the same traders. It is more like a give-and-take, inevitable situation. However, when the weight of taking (taxation) feels heavier than the support being offered, dissatisfaction naturally arises.

I don’t know how many times I have walked into a shop, only to be told that the price has gone up because of a new tax, usually at the start of the financial year. I get genuinely upset. Why? Because the same trade policy meetings I sit in call for a conducive environment to nurture small businesses, yet the moment something begins to grow, it seems to attract the tax man’s eye.

I like to describe this tension using three characters: Taxy, Trady and Trapy. They represent Tax Policy, the Trader, and Trade Policy. These three cannot exist without each other, yet there are moments when their relationship feels strained. I recall a scenario where the taxman introduced a tax contrary to what the trade policy experts desired and obviously against the traders’ wishes. As a young officer, I watched closely for the outcome. I was convinced that the traders would never return to work until the tax was removed. What unfolded later became a key lesson not only in my career but in my life.

For a long time, governments have sought ways to balance these three in a growing economy without compromising the other. Experience has taught me that the best place for a reasonable position for all three is a place called dialogue. Honest, data-driven and consistent dialogue with actionable outcomes implemented within agreed timelines.

 Unfortunately, due to various reasons, government policies worldwide often prioritize certain policies over others. Governments need taxes to meet national obligations. Businesses need to generate a profit to survive and grow. Trade policy needs predictability and fairness to attract investment and build competitiveness. It is a cycle that demands continuous dialogue for the greater good. Taxy must appreciate the space Trady and Trapy need to breathe and grow. Likewise, Trady and Trapy must understand the role Taxy plays in sustaining public services and national development. When dialogue guides this relationship, there is less room for family struggle.