Additional GST.
The government's decision to impose an additional general sales tax on 'luxury' items once again shows the lack of creativity in our attempts to increase state revenue. With avenues to increase injections few and far between, the government continues to rely on the GST for a quick solution to its own problems and the IMF's requirements, and this weak policymaking process is only leading to higher inflation as a result.
The new 25 percent imposition will cover a range of commodities such as SUVs, cigarettes, ornamental articles and more, but the lack of clarity on what constitutes a luxury item is still problematic and import products such as pet food and home appliances are also included on this list.
When you have precious few substitutes for certain staple products at home, the end result is higher inflation and a failure to reduce the import bill. In the case of pet food for instance, many have pointed to the lack of healthy options in the local market and...
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