THE TAX CRUNCH PERSISTS!

Soaring tax obligations and persistent economic uncertainty worry corporates

The tax regime continues to be a major business concern, intensifying the burning issues facing the corporate community, particularly foreign currency earners – including many large-scale enterprises – who are formally subject to taxation from 1 April.

Fifty-eight percent of polled executives cite high taxes as their primary concern – marking a marginal increase of one point from March (57%).

In the latest LMD-PEPPERCUBE Business Confidence Index (BCI) survey, interest rates emerge as the second most pressing concern with a third (33%) of respondents expressing anxiety about the cost of borrowing.

According to the exclusive survey conducted in the first week of April, inflation moved up the ranks to become the third most cited concern, despite the official rate continuing to record deflation. Thirty-two percent of respondents – up from 23 percent in the previous month – cite it as a worry.

Financial instability ranked fourth with slightly over a quarter (26%) highlighting it as an anxiety. And rounding out the top five are bureaucracy in the state sector and the dollar crisis, both cited by 18 percent of participants.

On a national scale, a large majority (78%) continue to view the economy as their foremost apprehension, reflecting a slight uptick of four percentage points compared to March.

Anxiety over the cost of living remains high with its impact rising sharply by 31 percent in April to 67 percent (up from 36% in March).

Meanwhile, concerns about poverty climbed to third place with 18 percent of poll participants citing it as a burning issue.

Bribery and corruption rank fourth while the education system rounds out the top five, highlighted by 16 and 14 percent of respondents respectively.

– LMD