DOING BUSINESS IS COSTLY!

Inflation and taxes take top billing among the burning issues for business

The latest LMD-PEPPERCUBE Business Confidence Index (BCI) survey has inflation and high taxes locked in a tight race for the top spot among the burning issues for business. The challenges likely stem from the weight of income taxes and the increase in value added tax (VAT).

In February, 45 percent of survey participants said that inflation is their primary concern, closely followed by high taxes (44%). However, this marks a slight easing compared to January, when both inflation and high taxes were cited by 49 percent of poll respondents.

According to the exclusive survey conducted in the first week of February, interest rates and political interference also worried corporates with a third of the sample population expressing concern over both categories.

The poll also underscores the ‘dollar crisis’ as the fifth most pressing concern (17 of the 100 participants said so).

On a national scale, the emerging political culture crept in to become the foremost concern among businesspeople with nearly two-thirds (66%) citing it as a worry. This reflects a notable 18 percentage point spike from the preceding month – yes, the election season beckons!

The economy, which hogged the spotlight as the most pressing issue for several months, also concerned a larger proportion of biz executives (by seven percentage points to 65%).

Meanwhile, the high cost of living maintained its No. 3 position for the third consecutive month – it too increased by as many as 16 percentage points to 45 percent in February.

Bribery and corruption (27%) ranked fourth while poverty came in next (21%).

– LMD