Zimbabwe's finance minister who, in August 2005 raised the country's Value Added Tax (VAT) 2.5 percent, lowered the tax 2.5 percent effective January 1, 2006.
Inflation has been increasing out of control for some time, and Zimbabwe appears to be in a state of collapse. When the tax reduction was announced, a consensus quickly developed among retailers that the tax reduction would mean very little to the country's long-suffering consumers.
The tax reduction was reported in a January 5, 2006 story in the Financial Gazette (Harare).
One financial analyst interviewed for the Gazette...