Mini Budget?

[posted 15 June 2010, 1445]

Expect VAT to go up to 15% and customs duty to increase on a range of items in the mini Budget likely to be announced soon.

The precarious state of government finances has compelled the regime to rake in more revenue through tax increases to pay for its operating expenditure and loan repayments.

With inflation running in double digits, budget deficit and public debt at unacceptable levels and major sectors of the economy grossly underperforming, many are speculating that the dollar may be further devalued, as a last resort.

Details of government finances are no longer available to the public because of restrictions placed on it by the authorities. So, we can say that accountability and transparency are no longer considered essential tools of good governance. Disclosure of financial information is taboo.

Increased taxation will fuel inflation further, adding to the already intolerable situation faced by the people, particularly the poor.

“We are feeling the pinch - it is difficult to survive with the kind of money we have to pay for food and other household items,” says a housewife whose combined family income is $150 per week.

Well informed business sources and social workers are predicting harder days ahead.

“If another devaluation comes, then we are finished,” was the terse comment of a garment worker who earns just $70 a week in sweat shop conditions.