ubongokid
JF-Expert Member
- Apr 30, 2017
- 2,154
- 4,184
Looking at the Tanzanian economy at present, nobody can tell for sure if the economy s booming or shrinking.
Nobody can tell if we are in depression or recession or at the peak of our economic cycle. There is divided opinion about this and today I will not attempt to give my opinion on this or any other aspect of the Economy of Tanzania.
Today I want us to look at one very popular economic approach advocated by John Keynes - Keynesian Economics (Which emphasized the need for the government to increase spending and lower taxes in order to stimulate the economy).
I believe that we are all witness to the increased government spending but why are we not seeing the impacts in the economy?Why is there divided economy.It is because of the Taxes, charges and other government fees.
In order to ensure that the spending is translated into real economic gain three things must be done:
1. Decrease external spending,ie spending that leads to outflow of financial resources as this will have negative effect on our trade balance.
Projects that need to be halted include all unnecessary imports and where possible no foreign company should be given and projects without local partnership.
Spending should also be increased at local levels to ensure that every district has a major road project or construction projects
2. Increase of domestic spending should be done to ensure that there is increased cash circulation in the economy
3. Tax cuts by atleast 40%,this may include Slashing licensing fees by 60%, VAT by 40% Personal Income Tax by 40%, Corporation Tax by 20%, Other fees and Levies by 50% and removing all unnecessary TAXES and FEES.
Imports duties can be considered on the basis of product types and we can have Bilateral arrangement with certain countries to have a reciprocal TAX regime which will enable us to EXPORT cheaply and for them to import cheaply.
I have not gone into much details of this suggestion but I believe that the summary will serve to help guide government policies and making people's life better.
Nobody can tell if we are in depression or recession or at the peak of our economic cycle. There is divided opinion about this and today I will not attempt to give my opinion on this or any other aspect of the Economy of Tanzania.
Today I want us to look at one very popular economic approach advocated by John Keynes - Keynesian Economics (Which emphasized the need for the government to increase spending and lower taxes in order to stimulate the economy).
I believe that we are all witness to the increased government spending but why are we not seeing the impacts in the economy?Why is there divided economy.It is because of the Taxes, charges and other government fees.
In order to ensure that the spending is translated into real economic gain three things must be done:
1. Decrease external spending,ie spending that leads to outflow of financial resources as this will have negative effect on our trade balance.
Projects that need to be halted include all unnecessary imports and where possible no foreign company should be given and projects without local partnership.
Spending should also be increased at local levels to ensure that every district has a major road project or construction projects
2. Increase of domestic spending should be done to ensure that there is increased cash circulation in the economy
3. Tax cuts by atleast 40%,this may include Slashing licensing fees by 60%, VAT by 40% Personal Income Tax by 40%, Corporation Tax by 20%, Other fees and Levies by 50% and removing all unnecessary TAXES and FEES.
Imports duties can be considered on the basis of product types and we can have Bilateral arrangement with certain countries to have a reciprocal TAX regime which will enable us to EXPORT cheaply and for them to import cheaply.
I have not gone into much details of this suggestion but I believe that the summary will serve to help guide government policies and making people's life better.