Call to grow economy


I MADE a call to the Marape led government three weeks ago to factor the 2020 Budget at K20 billion.
But my estimate was over by K1.3 billion to bail out the economy from an inevitable recession.
Thumps up as the Government read the signs well to assure the private sector does not to lay off workers.
But the formidable challenge is for the Government to get the right policy mix and formulas with specific investment incentives to grow new investments rather than trying to tax the micro, small and medium enterprises (MSME) at K250,000 threshold.
It is better to exempt than to collect two per cent rate per annum amounting to K5,000 which is still a lot of money when those category of self-employed people contribute to consumption base tax and user pay fees for power, fuel, water, road transport registration and other general goods and services.
It is better to make more new gardens to harvest tax rather than existing ones to go out of business.
Better still, monitor big businesses who pay less due to all allowable deductions and set a benchmark.
The challenge is still there to grow the economy to at least make room every year for the 60,000 school leavers entering the job market.

Observer NCD