…tax strangulation nationally
Our Finance Minister’s a funny fella. Not “ha-ha” funny…but funny like in “strange” with the pronouncements he comes up with. It might be related to the debate in the press about whether we don’t really need a Ministry of Economics or a Ministry of Economic Planning. Now, Dear Readers, you would know your humble Eyewitness isn’t too enamoured of the species known as Homo Economicus.
But he has to concede at least when fellas are qualified in the field, at least their jargon allows folks to know whether there’s internal consistency and coherence in what they’re carrying on about. Like that qualified economist fella in the Stabber – he introduced the term of “donkey cart economy” from his academic training and we all know what he’s talking about.
But it didn’t seem the Finance Minister did. He obviously thought the economist was recommending donkey carts as a feature of a “green economy”. He’s banned older reconditioned cars and consigned most of us plebes, to resorting to donkey carts to get from point A to point B. Not ha-ha funny!
Anyhow, back to your Eyewitness’ latest perplexity on the Finance Minister’s pronouncements. It had to do with his boast that overall revenues raked in by the Government climbed upwards – by 6% or B – even though VAT collection plummeted. He attributed this circumstance to a host of factors – especially increased gold production and vigilance of the taxmen. But what did it all mean for the economy – and more to the point – us?? Mum’s the word!
Well, at a minimum, if VAT collection is plummeting it means that consumers are spending less! And if in each area of collection, the Finance Minister showed increases far in excess of the overall 6% increase…it means the fall of VAT was MASSIVE to pull it down so much! And that’s what folks’ve been talking about. Improved collections from activity that was already going on might be good for the Government today…but there’s only so much blood you can squeeze from a fixed-signed stone.
The more important question is what about economic activity – of which VAT’s only one indicator? And the answer is…(drumroll)…. contrary to what the Finance Minister’s been saying – things na regular! This economy is slowing down. And also contrary to what the Finance Minister’s saying, the increased revenues also have to do with the increased taxes the Government’s been imposing in so many other ways. Like collecting excise taxes on local alcohol that’s used as an intermediary in manufacturing. And also on other imported manufacturing inputs.
If the strangulation continues, the economy might just be asphyxiated by year-end.
…tax strangulation in city
One of the problems with communists is since their ideology tells them all businesses are basically bloodsuckers…to extract that blood through taxes is a salutary affair. The taxes would be used to improve the lot of the poor who’d get some blood infused back into their emaciated frames. At least that was what they told the peons.
So, is it this driving the present lot – even at the municipal level – on their tax mania? Or is it the demonstrator effect from above? Check out the Georgetown municipality’s tax frenzy in the few short months after the LGE. There’s the parking meter…which is a tax that’ll bite you deeper than that Dracula fella from Transylvania! Then there’s that $25,000 Container Fee that’ll come out of your pockets, believe you me! Ditto on the fees on vendors and the 10% INCREASE ON ALL PROPERTY IN GEORGETOWN.
The Mayor and her crew aren’t all crypto-communists, are they? Not by their lifestyles, they aren’t!
….enlightenment?
Unlike the World Bank, the IMF doesn’t earn money on loans for development projects. So when it advises this Government it’s being obstinate on refusing to harness our Hydroelectric Power potential, there’s no self-interest.
So, you think our Finance Minister will become enlightened?
