The Economic Effects of Tax Cuts
In The News (18 March 2012)

Ministry of Economic Development stated on 05th December 2011 that the President ratified the 9th amendment bill to Act number 31/79 (Export Import Act) on the 1st of December 2011.

The Act now states that 0% import duty is applied on all construction goods, fertilizers, environment friendly goods and all food products except those that can be produced locally.

This reduction is proposed to bring about positive changes to the market prices of essential products.

The Ministry of Economic Development has prepared an analysis on the anticipated market prices for 29 essential food products for the year 2011, after the reduction of import duty. The analysis shows that even with the inclusion of 6% GST, and allowing for the same rate of profit as currently applied to the products, the price of these products can reduce between 9% to 13% in the starting year.

In addition to this, the analysis is done to show the anticipated reduction in price of the specific items that are currently available in the market.
Sign in to Google to save your progress. Learn more
Define the term 'goods' and distinguish between Durable and Non-durable goods.
Why do you think some food products are termed as 'perishable goods'?
The Act now states that 0% import duty is applied on all construction goods, fertilizers, environment friendly goods and all food products except those that can be produced locally. Discuss the possible reasons for the government to continue taxing some food products that can be produced by local farmers.
What is the major economic aim of the Maldivian government in eliminating import duties?
Describe what is meant by 'market price' and identify at least FOUR additional factors, other than tax cuts, that may contribute to reduce the market price of food products in the Maldives.
How do you think a fall in the market price of food products may benefit the consumers? Explain you answer.
Submit
Clear form
Never submit passwords through Google Forms.
This content is neither created nor endorsed by Google. - Terms of Service - Privacy Policy

Does this form look suspicious? Report

Google Forms