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By Untaught Economist
The Prime Minister has announced more changes to the tax structure in an attempt to overcome the severe financial situation that the country is faced with due to heavy borrowings.
The proposals appear to follow traditional patterns that would be acceptable under ordinary circumstances. We are however in an extraordinary situation where not only revenues fall far short of requirements but the economy is also far below the degree of dynamism required at this time.
The current situation demands out of the box thinking and quick changes to galvanise the economy and to generate the necessary revenue for the Government.
We need to re-invent 1977.
The country as a whole has to be galvanised to much higher level of economic activity such that there would be an intensified work ethic, greater production and increased exports.
It is necessary for us to recognise the following:
It is also necessary to recognise the following:
I would propose the following:
The objective of the scheme is
Conclusion
These are some general thoughts put together to generate discussion and to encourage Government Policy towards a system that would encourage greater economic activity and also enable the Government to collect the required revenue. The proposals including the tax percentages indicated above are not sacrosanct. These are mentioned in order to describe the system. The final rates and areas for revenue collection have to be determined by the Government using statistics available to them.
So long as the objective of non-discriminatory tax collection which will target all people liable for tax leaving out the poor, is achieved, then the project can be considered successful.
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