Prices decline to true value of goods, services

Prices decline to true value of goods, services

Wed Mar 29, 2017

Mr Lusajo Mwankemwa told senior reporters at a seminar in Zanzibar that prices had gone up after President John Magufuli crackdown against tax evaders, corruption and wasteful government spending when he came to power in 2015.

 

'This is the transition period where prices of various goods and services are readjusting to stability and reach the real position,' he said in the seminar. Mr Mwankemwa the crusade against tax evasion had touched some business who imported goods without paying taxes and sold them at low prices.

 

'After the crackdown, some business people closed their businesses while others increased the prices to cover the real cost of importing or producing goods and services,' he said.

 

However, inflation trends since last October was on increase pattern started from 4.5 per cent to go up to 5.5 per cent this February. The trend reverse has occurred in due course following government decision to channel the scarce resources to development expenditure.

 

This way will contribute to economic growth with expectation of benefitting its people through its trickle down effects. For example the increased investment in infrastructure, transport and other cost will definitely go down thus impacting on the prices of goods and services to the final consumer.

 

However efforts should be done to promote consumption in order to stimulate economic activities in the manufacturingand other business sector

SOURCE: DAILY NEWS

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