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By ALICE NACHILEMBE

Consumer Unity and Trust Society (CUTs) says the zero rating on fuel could slow the increasing cost of living and is a commendable move by the government.

CUTS Assistant Programmes Officer Ucizi Ngulube said a statement by Ministry of Finance on zero rated on petrol and diesel product is a good move.

Mr Ngulube said with the poor economic performance Zambia has experienced over the past year with inflation at 19.2 percent at the end of 2020 and the Kwacha depreciating by over 40 percent against the dollar.

He said CUTS undertook a study called the Fair Tax Monitor that identifies the existing challenges in the current tax regime.

Mr Ngulube said thehe study revealed an increasing dependency on indirect taxes such as VAT which was considered regressive given the indiscriminatory nature of these taxes.

He said the effect of the SI would reverse this trend and hopefully result in shift towards the collection of direct taxes that are, as research has shown considered more progressive.

Mr Ngulube said the Ministry of Finance in their statement indicated that the objective of this zero rating was to counter the negative effects of the depreciating Kwacha.

He said the zero rating on these select fuel products is a welcome move.

Mr Ngulube said the government should continue to take steps in the sector to ensure that the high cost of living is addressed and increase the real incomes of Zambian citizens.

 

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