VAT: States need the money, but can we trust the government? – Seye Olaniyonu

As always, the argument on the surface sounds logical. However, the issue of trust in government is vital. That said, there is a need to thoroughly discuss the merits and demerits of the policy.

Of course, people opposing the policy are of the view that it will further bring hardship on the people by causing inflation, thereby undermining the new minimum wage. Some pro-subsidy removal are even against the increase of VAT, which is quite contradictory.

While the empirical evidence to substantiate this claim is not yet available, it’s better to focus on the known fundamentals.

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