2006News

Rumors caused price hikes

Retail merchants, importers and wholesalers met with members of the government’s economic team to look at the reasons behind the unusual and very unpopular increase in many items at retail level. The meeting lasted for more than four hours and one of the results was that the government is going to print 150,000 leaflets explaining just which items are subject to increases and what the retail price should be for these items. The broadsides will explain which items are now subject to 16% VAT as well as all those that are still not affected by new taxes. The assembled businessmen attributed the price hikes to rumors and poor information published in the papers about the new tax structure. The group also reaffirmed that just nine articles will now be subjected to the 16% VAT rate: soap, tomato paste, detergent, matches, salt, vinegar, toothpaste, fish and cereals.