Charter of the Economy Constraints to Growth Clearly, the growth in trading activities hinges primarily on the increase in output in the agricultural and manufacturing sectors. Further, the dominance of very small establishments precludes the access to credit, use of digital technology for transactions and greater vulnerability of employment to the down swing in the business cycle. Recommended Reforms and Policies Tackling Monopolies: The trade in agricultural commodities, especially fruits and vegetables, is dominated by the Aarthi , the wholesaler. This tends to reduce the price received by the grower and raise the prices to retailers and eventually the consumers. As such, there is a case for a wider role in procurement by Government agencies like PASSCO. This will also eliminate the seasonal‘cobweb’ in vegetable prices. Taxing the Wholesale and Retail Trade Sector: The small size of the bulk of establishments and the lack of documentation of transactions greatly limits the tax potential of the sector, despite the fact that is the largest sector in the economy. Given the sectors’ informal nature, it is the ideal candidate for levy of a simple presumptive/ withholding tax. This is in the form of a presumptive income tax added to the electricity bills. Based on the net income per kwh of electricity consumed, the proposal is to change the existing tax system to the following: Electricity Consumption/Bill (kwh per month) 1 – 200 200 – 400 400 – 600 600 – 1000 > 1000 PIT on the Electricity Bill 0% 5% 7½% 10% 15% This will be treated as the fixed tax. However, the tax payer can file a return under the normal personal income tax system and claim a refund. 24.3. Transport, storage, and communications The income generated in this sector is primarily from road transport, with a share of over 74 percent. The newly emerging and fast-growing sub-sector is telecommunications with a share approaching 14 percent. The remaining value-added share of 12 percent is contributed collectively by pipelines, railway, water transport, air transport and storage. 234