BURNING ISSUES

TAX SQUEEZE INTENSIFIES 

The tax regime displaces inflation as economic worries weigh on the nation

High taxes and inflation continue to swap places at the top of the list of business concerns. In September, high taxes displaced inflation as the issue worrying corporates most, following the stringent tax laws that came into effect during the month. 

It is cited by 45 percent of surveyed executives, which is a nine point spike from August (36%). 

In the latest LMD-PEPPERCUBE Business Confidence Index (BCI) survey, inflation ranks second with 41 percent of executives identifying it as a major concern. This marks an 11 percentage point decline from the previous month (52%).

Workforce standards enters the top three with nearly one in three respondents (30%) expressing concern – that’s up 16 percentage points from 14 percent in August. 

Meanwhile, interest rates rank fourth at 26 percent while brain drain rounds out the top five, cited by a fifth (20%) of executives. 

On a national scale, the economy remains the country’s most pressing issue with around seven in 10 (71%) respondents identifying it as a challenge – up two percent from August. 

Meanwhile, the cost of living ranks second with 60 percent of poll participants saying it is a concern, reflecting a 10 point decline from seven in 10 (70%) in the month prior. 

Climate change retains third place, cited by just under three in 10 (29%) respondents – down one percentage point from August. 

And the political culture follows in fourth place with 18 percent of the sample population saying so while the education system enters the top five, cited by 12 percent of respondents.