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VSB: “Price cap poses a risk for the economy”

PARAMARIBO – The Association of the Surinamese Business Community (VSB) recently criticized the government’s policy on fuel prices and it specifically...

Times of Suriname

condemned the introduction of a price cap. Local entrepreneurs warned that the price cap would have a negative impact on the nation’s macroeconomics. Although the local business community understands the need for temporary interventions in times when the price of crude oil goes through the roof on the global market, it also expressed its criticism. The VSB pointed out that most of the business owners claim that the price cap could in fact trigger economic instability as it would have result in inflation and threaten the stability of the foreign currency exchange rates. About 75% of the entrepreneurs who participated in a poll that was conducted by the Association of the Surinamese Business Community claim that a price cap would result in consumers paying the price as it would be a temporary solution and not a structural one. The respondents prefer a clear policy that is aimed at providing support to vulnerable groups and sectors that are hit the hardest. They also emphasized that additional reforms are essential. The respondents claim that the government must also lower taxes and tackle the informal sector in order to limit the economic impact while improving fair competition. The VSB warned that temporary measures must not turn into structural disruptions of the economic system.

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