𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐟 𝐥𝐨𝐰𝐞𝐫𝐢𝐧𝐠 𝐕𝐀𝐓 𝐭𝐡𝐫𝐞𝐬𝐡𝐨𝐥𝐝 !

Do you recall the SME Minister claiming that the lowering of the VAT threshold on businesses to Rs 3 million turnover will have no impact on consumer prices and employment because they will offset the VAT imposed on their business by the reimbursed VAT paid on inputs ?

As Govt is collecting an additional Rs 1.9 bn, the VAT collected on the valued added by the estimated 6900 enterprises will be higher than the VAT reimbursed on the inputs. Thus consumer prices will definitely be increasing if these enterprises choose not to cut down on their employment .

Le Govt du “Sanzman” had promised to tackle persistent inflation and leave people with more disposable income .

While Govt’s committing an initial Rs 2 billion as part of a larger, Rs 10 billion Price Stabilisation Fund, to protect consumers from rising costs of essential goods is not having much of an impact , some of the other lousy budget measures are burdening small businesses with compliance and leading to a ripple effect of higher costs throughout the economy.

𝑳𝒐𝒘-𝒊𝒏𝒄𝒐𝒎𝒆 𝒉𝒐𝒖𝒔𝒆𝒉𝒐𝒍𝒅𝒔, 𝒂𝒓𝒆 𝒃𝒆𝒊𝒏𝒈 𝒉𝒊𝒕 𝒕𝒉𝒆 𝒉𝒂𝒓𝒅𝒆𝒔𝒕, 𝒂𝒔 𝒕𝒉𝒆𝒚 𝒔𝒑𝒆𝒏𝒅 𝒂 𝒍𝒂𝒓𝒈𝒆𝒓 𝒑𝒐𝒓𝒕𝒊𝒐𝒏 𝒐𝒇 𝒕𝒉𝒆𝒊𝒓 𝒊𝒏𝒄𝒐𝒎𝒆 𝒐𝒏 𝒔𝒕𝒓𝒆𝒆𝒕 𝒇𝒐𝒐𝒅 𝒂𝒏𝒅 𝒍𝒐𝒄𝒂𝒍 𝒇𝒓𝒖𝒊𝒕𝒔

But rising food prices, especially for “ ti LePep” ,are a significant reason why inflation is higher than expected.