Why don't you analyse this from an ethical perspective:-
1) Is the competition currently in place beneficial to the common mwanainchi ? I believe the answer is yes. Price wars help the majority as they can get more for less.
2) Is putting a price floor useful to the common public ? Well you decide, my view is that this will deny the public the right to cheaper quality services. Isn't it human nature to purchase cheaper yet quality products. You also deny the public the right to innovation that fierce competition brings.
3) Can taxes be controlled/maintained due to price control floors? If i'm not mistaken there is no relationship. My take is that with lower prices you will speak for longer hours and thus still run up a bill that will assist in adding to the tax kitty of KRA and the people at large.
The people defining these floors must consider that it will be hampering business development and the move would be ethically questionable as the winners of such a move would be the minority and not the majority .
A word of warning: Putting a price floor on one product will open avenues for other moguls to apply for floors. Petrol, food, housing, clothing, electricity, water ....
I hope you get the picture.
Thanks
Athar
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