Former PM:"VAT is basically an attack on consumption trends and habits. It is the cruellest way for a government to raise money in an economy that is depressed and under performing.....“If the government wants to raise revenue, there are better, less painful ways of doing so without making taxation a burden.” “There is no doubt a chain reaction of prices will follow as costs of transport go up, cost of farm inputs increase and those who offer services to make the economy run put up their costs as well,” “Soon schools will raise fees because of the growing cost of food and other consumables. The levying of 16 per cent on X-ray and other diagnostic services will deal a severe blow to the health sector since to cut costs and accommodate the poor patients, doctors will cut X-ray services and rely on clinical symptoms which will result in increased misdiagnosis and lots of deaths.”..... “In fact, we fear that the increase in VAT may lead to failure by government to meet its revenue targets as people cut down on consumption because they cannot afford.” Again increasing the cost of Banking services by 10% will lead to slow growth of economy since the common man will resort to keeping money under their mattresses,few will be willing to take Mortgage loans from Banks hence a big blow to the Real Estate developelopment.
Posted on: Thu, 05 Sep 2013 06:25:43 +0000
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