MARY LEMBA
Ndola
MINISTER of Finance and National Planning Situmbeko Musokotwane says the country has forgone about US$200 million in revenue through tax relief measures aimed at cushioning citizens and businesses from high fuel prices.
Dr Musokotwane says Government’s decision to suspend excise duty and zero-rate value added tax (VAT) on petroleum products is aimed at easing the burden on Zambian consumers amidst the volatile international oil market.
He said this when he shared Zambia’s experiences in addressing the emerging warinduced global economic crisis at the ongoing Spring Meetings of the International Monetary Fund (IMF) and the World Bank held in Washington D.C.
“The price cushioning through tax relief offered to citizens andbusinesses through the suspension of excise duty and zero-rating of VAT on petroleum products has resulted in the loss of approximately US$200 million,” Dr Musokotwane said.
He urged African governments to adopt broader and more strategicfiscal policies to address recurring economic shocks while promoting sustainable development.
Speaking at the over-subscribed IMF-Africa Fiscal Forum, Dr Musokotwane said the continent should move beyond crisis management but use public policy to boost productivity, strengthen energy security and transform its economies.
The minister warned that Africa faces a potential energy crisis within the next 12 months due to ongoing conflicts in the Gulf region, noting that such developments can heighten inflation, increase production costs and strain national budgets.
He said domestic reforms enhance economic resilience, even ascountries seek support from institutions like the IMF and the World Bank.
Drawing lessons from Zambia’s reforms, Dr Musokotwane cited Government’s shift from inefficient fuel subsidies to investments in free education and other social sectors as a demonstration of prudent fiscal management.
He said the use of digital systems in agricultural support programmes has improved efficiency, reduced waste and eliminated ineligible beneficiaries.
Dr Musokotwane urged African nations to leverage fiscal policy as a tool for structural transformation, industrialisation and value addition, stating that long-term prosperity will depend on building productive, resilient and competitive economies….https://enews.daily-mail.co.zm/welcome/home
