The increase in VAT from 10 too 11% officials went into effect yesterday on Jan 1st 2018. The 1% increase is expected to lead to a 5 to 7% increase in the prices of goods, which probably already took place after the increase was announced back in July. It’s difficult to predict the impact of this hike but businesses are expected to struggle as well as consumers will start spending less, which could lead to an even bigger economic recession than the one we’re currently in.

On another note, tax hikes are common practice in many countries but we need a serious economic-reform plan before implementing any tax hikes and we need to tackle corruption before anything else in this country.