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{
    "id": 102541,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/102541/?format=api",
    "text_counter": 285,
    "type": "other",
    "speaker_name": "",
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    "speaker": null,
    "content": "go down to the drain, but we must keep our minds focused on projects and visions that we have already been party to in terms of formulation and presentation. On tax reforms, the Deputy Prime Minister and Minister for Finance has got it right. We need many tax reforms to be put in place in order to collect the sums of money that we need for development. In this regard, I think the formation of a Tax Reform Commission is a welcome idea which the House should support wholeheartedly. The East African Community (EAC) or the common market for East Africa comes into being essentially on 1st July. This is an opportunity that, again, has not been well addressed by this Budget. I do not know how we will take advantage of the larger market. I also did not feel that there was any move towards harmonization of the rates of tax of the various members of the Community. This is because without rationalization and harmonization of the taxes and the rates of taxation of these Community members, we will have disparities in terms of capital flight and market preference. That is an issue that needs to be addressed rather urgently. I am very happy to note that inflation rates are coming down and interest rates are consequently coming down. However, the underpinning of this Budget, that is, the GDP growth of 5.1 per cent is a cause for worry because it presupposes that conditions are perfect and stable as they were this year and subsequently, maybe, up to the end of the Budget cycle. The worry is that with the little instability, the 5.1 per cent may not be achieved. The non-achievement of this growth rate will mean that to be able to realise the programmes in the Budget, it will be necessary to borrow, probably, domestically to be able to bring to fruition the development progrmmes in the Budget. If that is the case, it will mean that there will be less money for the private sector. There will be crowding out and a reversal of interest rates upwards. This will again be an issue with respect to new investments because high interest rates discourage investors. That is a worry I would like addressed. The issue about the same-gauge railway being in place in the near future is very welcome news because it will relieve the roads of the burden of heavy cargo and hopefully last longer. Mr. Temporary Deputy Chairman, Sir, one of the areas that were not quite well addressed in this Budget is research. Our universities do not seem to have been considered in funding for research. If we are going to gain in terms of industrialization and development, we must invest in research."
}