OPINION: VAT and foreign policy are one.
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GUEST - Peter Attard Montalto - Managing Director and Global Lead for Capital Markets, Political Economy, and JET at Krutham
The VAT question and US foreign policy question have something in common — they both involve pragmatism. The VAT debate has been fascinating because it is so multifaceted that several things can be true at once.
It can be true that VAT is the best tax to hike if you have to raise more revenue, while it can also be true that parties see political advantage in prioritising different mixes of tax and spending. What might make sense in terms of dry, dispassionate fiscal policy may well not be appropriate from a political priority standpoint.
Similarly, what is best for one budget or political event in the government of national unity (GNU) might not be the case for several budgets and GNU fights one after another.
The VAT question and US foreign policy question have something in common — they both involve pragmatism. The VAT debate has been fascinating because it is so multifaceted that several things can be true at once.
It can be true that VAT is the best tax to hike if you have to raise more revenue, while it can also be true that parties see political advantage in prioritising different mixes of tax and spending. What might make sense in terms of dry, dispassionate fiscal policy may well not be appropriate from a political priority standpoint.
Similarly, what is best for one budget or political event in the government of national unity (GNU) might not be the case for several budgets and GNU fights one after another.