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