Prices of maize flour, bread, wheat flour, milk and other basic commodities will shoot up by 16 per cent, if MPs approve plans to impose a tax on them.

Economic nonsense. Necessities are inelastic goods in the economy. An increase in the price of necessities will result in a diversion of disposable income, proportionately resulting in less spending on other goods and services in the overall economy. The effect would be a slowdown in the overall economic output of the country and thereby a fall in aggregate demand or GDP.

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