Ethiopian News, Current Affairs and Opinion Forum
DefendTheTruth
Senior Member
Posts: 13240
Joined: 08 Mar 2014, 16:32

Reducing tax helps consumer by reducing the consumer price, damping growth

Post by DefendTheTruth » 03 Sep 2021, 14:53

Consumer goods are given priority over economic growth, next year we may not see many projects get implemented, but the consumers will see some sort of relief from the soaring price of the consumer goods.

Increasing internal supply also curb the demand for outside supply, and in turn checks the cost of forex, another skyrocketing price.

Households will have a chance to save more, giving incentives to more small scale investments.

Ethiopia policymakers take aim at soaring inflation



Educator
Member
Posts: 2370
Joined: 03 Jun 2021, 00:14

Re: Reducing tax helps consumer by reducing the consumer price, damping growth

Post by Educator » 03 Sep 2021, 15:51

Unfortunately, this move will not make any dent on the unbearable inflation of consumer goods. The reasons for the inflation are many folds but to list a few:

1- govenment policy that practically prevent individual's aspirations to work and become inovative. The lack of peace and security which is exacerbated by the government as a policy of divide and rule is scaring many able individuals away from investing, working and innovating.

2- the high cost of transportation within the country is another major contributor to the inflation. High cost of vehicles and their separe parts with the corrupt trafic police and local law enforcements are the main reason for high cost of transportation.

3- lack of productivity especially in the farming industry is another inflation driver. How easy is it to acquire a piece of land in any part of the country and start farming ? Very difficult.

So in short, just removing the tax from wheat will not provide any relief. In fact two weeks after the effective date of this new directive the price of wheat will increase. Sugar and oil are luxury, at least for me, fo I really don't care how much they cost. They only cause diabetes and obesity and further cost of health care.
DefendTheTruth wrote:
03 Sep 2021, 14:53
Consumer goods are given priority over economic growth, next year we may not see many projects get implemented, but the consumers will see some sort of relief from the soaring price of the consumer goods.

Increasing internal supply also curb the demand for outside supply, and in turn checks the cost of forex, another skyrocketing price.

Households will have a chance to save more, giving incentives to more small scale investments.

Ethiopia policymakers take aim at soaring inflation



DefendTheTruth
Senior Member
Posts: 13240
Joined: 08 Mar 2014, 16:32

Re: Reducing tax helps consumer by reducing the consumer price, damping growth

Post by DefendTheTruth » 03 Sep 2021, 16:11

It seems that you are an accomplished macro econmist, would you mind sharing on when and where you visited the course on the subject matter? Just curious.
Educator wrote:
03 Sep 2021, 15:51
Unfortunately, this move will not make any dent on the unbearable inflation of consumer goods. The reasons for the inflation are many folds but to list a few:

1- govenment policy that practically prevent individual's aspirations to work and become inovative. The lack of peace and security which is exacerbated by the government as a policy of divide and rule is scaring many able individuals away from investing, working and innovating.

2- the high cost of transportation within the country is another major contributor to the inflation. High cost of vehicles and their separe parts with the corrupt trafic police and local law enforcements are the main reason for high cost of transportation.

3- lack of productivity especially in the farming industry is another inflation driver. How easy is it to acquire a piece of land in any part of the country and start farming ? Very difficult.

So in short, just removing the tax from wheat will not provide any relief. In fact two weeks after the effective date of this new directive the price of wheat will increase. Sugar and oil are luxury, at least for me, fo I really don't care how much they cost. They only cause diabetes and obesity and further cost of health care.
DefendTheTruth wrote:
03 Sep 2021, 14:53
Consumer goods are given priority over economic growth, next year we may not see many projects get implemented, but the consumers will see some sort of relief from the soaring price of the consumer goods.

Increasing internal supply also curb the demand for outside supply, and in turn checks the cost of forex, another skyrocketing price.

Households will have a chance to save more, giving incentives to more small scale investments.

Ethiopia policymakers take aim at soaring inflation



Noble Amhara
Senior Member
Posts: 13728
Joined: 02 Feb 2020, 13:00
Location: Abysinnia

Re: Reducing tax helps consumer by reducing the consumer price, damping growth

Post by Noble Amhara » 03 Sep 2021, 16:30

. Eden aka Gadgalo Yabalo

Educator
Member
Posts: 2370
Joined: 03 Jun 2021, 00:14

Re: Reducing tax helps consumer by reducing the consumer price, damping growth

Post by Educator » 03 Sep 2021, 21:55

If anyone needs to be a macro economost or take a course on the subject matter to know when his/her stomach is empty and hungry. then God be with us.

On a serious note though, wouldn't it be better to beg mother Samantha for the wheat even if it is "spoiled" as Shimeles Abdisa would call it?
DefendTheTruth wrote:
03 Sep 2021, 16:11
It seems that you are an accomplished macro econmist, would you mind sharing on when and where you visited the course on the subject matter? Just curious.
Educator wrote:
03 Sep 2021, 15:51
Unfortunately, this move will not make any dent on the unbearable inflation of consumer goods. The reasons for the inflation are many folds but to list a few:

1- govenment policy that practically prevent individual's aspirations to work and become inovative. The lack of peace and security which is exacerbated by the government as a policy of divide and rule is scaring many able individuals away from investing, working and innovating.

2- the high cost of transportation within the country is another major contributor to the inflation. High cost of vehicles and their separe parts with the corrupt trafic police and local law enforcements are the main reason for high cost of transportation.

3- lack of productivity especially in the farming industry is another inflation driver. How easy is it to acquire a piece of land in any part of the country and start farming ? Very difficult.

So in short, just removing the tax from wheat will not provide any relief. In fact two weeks after the effective date of this new directive the price of wheat will increase. Sugar and oil are luxury, at least for me, fo I really don't care how much they cost. They only cause diabetes and obesity and further cost of health care.
DefendTheTruth wrote:
03 Sep 2021, 14:53
Consumer goods are given priority over economic growth, next year we may not see many projects get implemented, but the consumers will see some sort of relief from the soaring price of the consumer goods.

Increasing internal supply also curb the demand for outside supply, and in turn checks the cost of forex, another skyrocketing price.

Households will have a chance to save more, giving incentives to more small scale investments.

Ethiopia policymakers take aim at soaring inflation



Educator
Member
Posts: 2370
Joined: 03 Jun 2021, 00:14

Re: Reducing tax helps consumer by reducing the consumer price, damping growth

Post by Educator » 08 Sep 2021, 18:26

Learn a thing or two from this discussion.

DefendTheTruth wrote:
03 Sep 2021, 16:11
It seems that you are an accomplished macro econmist, would you mind sharing on when and where you visited the course on the subject matter? Just curious.
Educator wrote:
03 Sep 2021, 15:51
Unfortunately, this move will not make any dent on the unbearable inflation of consumer goods. The reasons for the inflation are many folds but to list a few:

1- govenment policy that practically prevent individual's aspirations to work and become inovative. The lack of peace and security which is exacerbated by the government as a policy of divide and rule is scaring many able individuals away from investing, working and innovating.

2- the high cost of transportation within the country is another major contributor to the inflation. High cost of vehicles and their separe parts with the corrupt trafic police and local law enforcements are the main reason for high cost of transportation.

3- lack of productivity especially in the farming industry is another inflation driver. How easy is it to acquire a piece of land in any part of the country and start farming ? Very difficult.

So in short, just removing the tax from wheat will not provide any relief. In fact two weeks after the effective date of this new directive the price of wheat will increase. Sugar and oil are luxury, at least for me, fo I really don't care how much they cost. They only cause diabetes and obesity and further cost of health care.
DefendTheTruth wrote:
03 Sep 2021, 14:53
Consumer goods are given priority over economic growth, next year we may not see many projects get implemented, but the consumers will see some sort of relief from the soaring price of the consumer goods.

Increasing internal supply also curb the demand for outside supply, and in turn checks the cost of forex, another skyrocketing price.

Households will have a chance to save more, giving incentives to more small scale investments.

Ethiopia policymakers take aim at soaring inflation



Educator
Member
Posts: 2370
Joined: 03 Jun 2021, 00:14

Re: Reducing tax helps consumer by reducing the consumer price, damping growth

Post by Educator » 08 Sep 2021, 19:48

By Dereje Gerefa Tullu
ብሄራዊ ባንክ ለዘይት አምራቾች እና ለአስመጪዎች ብቻ ብድር እንዲወስዱ ፈቅዷል የሚል ዜና አይቻለሁ ።
አንድ በጣም ያልገባኝ ነገር ዘይት አምራቾችን ከመድሃንት አምራቾች ምን ልዩ ያደርጋቸዋል? ከሌሎች አምራቾችስ ምን ልዩ ያደርጋቸዋል?

በነገረችን ላይ ከጤና አንፃር ዘይት እና ስኳር ከአልኮል በላይ discourage መደረግ ያለበት ነገር ነው።
ስለዚህ የኢትዮጵያ መንግስት አልኮልን ከማስታወቂያ አግዶ ዘይት እና ስኳርን በተለየ መልኩ የሚደጉምበት ምክንያት አልገበኝም ። በዚህ አይነት ሁኔታ መቼ ይሆን ሲጋራን የሚደጉሙት?


ለመሆኑ ስኳር መቀነስ ለጤና እንደሚመከር ባለስልጣኖቻችን አልሰሙም ወይ?
ለማንኛውም በዚህ ረገድ የሚመለከታቸው ወገኖች ከዶር ሊያ ጋር ቢመካከሩ ጥሩ ነው።
DefendTheTruth wrote:
03 Sep 2021, 16:11
It seems that you are an accomplished macro econmist, would you mind sharing on when and where you visited the course on the subject matter? Just curious.
Educator wrote:
03 Sep 2021, 15:51
Unfortunately, this move will not make any dent on the unbearable inflation of consumer goods. The reasons for the inflation are many folds but to list a few:

1- govenment policy that practically prevent individual's aspirations to work and become inovative. The lack of peace and security which is exacerbated by the government as a policy of divide and rule is scaring many able individuals away from investing, working and innovating.

2- the high cost of transportation within the country is another major contributor to the inflation. High cost of vehicles and their separe parts with the corrupt trafic police and local law enforcements are the main reason for high cost of transportation.

3- lack of productivity especially in the farming industry is another inflation driver. How easy is it to acquire a piece of land in any part of the country and start farming ? Very difficult.

So in short, just removing the tax from wheat will not provide any relief. In fact two weeks after the effective date of this new directive the price of wheat will increase. Sugar and oil are luxury, at least for me, fo I really don't care how much they cost. They only cause diabetes and obesity and further cost of health care.
DefendTheTruth wrote:
03 Sep 2021, 14:53
Consumer goods are given priority over economic growth, next year we may not see many projects get implemented, but the consumers will see some sort of relief from the soaring price of the consumer goods.

Increasing internal supply also curb the demand for outside supply, and in turn checks the cost of forex, another skyrocketing price.

Households will have a chance to save more, giving incentives to more small scale investments.

Ethiopia policymakers take aim at soaring inflation



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