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« Inside Spectrum Television | Main | Matters Arising »

Friday, 17 December 2004

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divine

It is a disgrace to cameroonians that at this period of the so called great ambition,the country is still experiencing high prices of goods.Its reALLY A DISGRACE TO THE COUNTRY.Today we are talking of unemployment and poverty of which alot has to be done.But what has been done so far.Now they want to add prices of goods.Cameroonians them selves should think about it.

Kimbeng Frankline

The good thing here is that whether you are in the opposition or in the CPDM, the high prices due in the most part to the regime’s mismanaged and misplaced Economic policies shall affect most Cameroonians( The common man) in like manner. Things will change the day we start using our votes wisely.
Frankline Kimbeng
Louisiana, USA

Che Sunday (Dr.)

How does a tax increase result in inflation? Does an increasse in price mean inflation? No!
The only time an increase in price signals inflation in when there is also an increase in income. In other words, inflation is defined as " too much money chasing very few goods." If the inflation rate in the country now stands at 2% as stated, that is almost counted as zero percent because it is insignificant. The tax hike being talked of is a value added tax, one that does not affect every product. Its impact is also going to be limited, affecting those customers opting to continue the consumption of the products in question. The higher price you pay reflects the additional costs incured in processing the product from a primary product to a secondary one. For example, if you chose to buy canned pineapples from a supermarket instead of from a local farmer, the price you pay reflects the farmer's selling price, wages paid at the cannery, cost of cans and inventory carry costs. Should a surchage be imposed on canned pineapples, the price of pineapples will not automatically increase. The farmer is still selling at his/her price. Inflation has not occured. Just a price increase in a given sector of the economy.
It is therefore very important that the population is well informed of the impacts of fiscal policy being implemented by the government. Telling them that inflation is on the way as a result of an anticipated tax increase can actually lead to hoarding and unecessary price increases when there is really nothing to be concerned.

Sly Peekay

Guys, Just wondering if someone is not getting things wrong here. I've always known that VAT or TVA is 18.7% and not 17%. Now it is moving up to 19.5%. Could you kindly verify if I am mistaken.
cheers

Sly

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