THE MOUNTING TAX BURDEN

High taxes and heightened economic anxieties undermine corporate sentiment

The tax regime remains a major business concern, adding to the burning issues facing the corporate community, with foreign currency earners – including many large-scale businesses – to be taxed from 1 April.

In line with this looming reality, 57 percent of executives cite high taxes as their primary concern – a six point increase from February (51%).

In the latest LMD-PEPPERCUBE Business Confidence Index (BCI) survey, state sector red tape – a new entrant to the list of concerns – takes second place ahead of high interest rates. Nearly a third (31%) of respondents expressed anxiety over bureaucratic hurdles, as in February.

According to the exclusive survey conducted in the first week of March, interest rates fell to third place (27%), up from 25 percent in the preceding month.

Inflation, which has been a persistent issue for months, slipped to No. 4 with slightly under a quarter (23%) highlighting it as an issue. Rounding out the top five, workforce standards and brain drain rank equally with 22 percent expressing concern about them.

On a national scale, a large majority (74%) continue to view the economy as their primary apprehension, reflecting a slight decrease of three percentage points from the month prior.

Anxiety about the cost of living remains high with its impact rising by seven percent in March to 36 percent (up from 29% in February). Meanwhile, concerns about the brain drain eased; it dropped to third place with around a quarter (26%) of poll participants citing it as a worry – down from 35 percent in the previous month.

The education system ranks fourth and poverty completes the top five, highlighted by 21 and 15 percent of respondents respectively.

– LMD