• Removal of VAT on fuel to reduce the cost of production.
• Pass down benefits of Value Added Tax on imported to the vulnerable.
Consumer Unity Trust Society (CUTS) has urged government to ensure that benefits of zero rating Value Added Tax (VAT) on imported fuel are passed down to vulnerable groups.
In an interview with Money FM, Society Programs Coordinator Ishmael Zulu said the removal of VAT on fuel will reduce the cost of production in the manufacturing sector, which will in turn have an impact on the price of goods and services on the market.
“We commended government for its efforts to bring down the cost of living in the country by removing VAT on imported petrol and diesel,” He said.
And Mr Zulu has called on the government to put in place measures, through the Economic Recovery Plan (ERP) that will safeguard the needs of the vulnerable people in society following an increase in the annual inflation rate.
He explained that the increase in the annual inflation rate for the Month of December to 19.4% as measured by the Zambia Statistics Agency raise concern to the organization because it implies that the cost of living for an average Zambian is on the rise.
“On the backdrop of 2020 and the account of the Covid-19 Pandemic, the rising debt levels, and the loss of jobs by most consumers due to the pandemic, Zambia’s economic situation has been underperforming, with an increasing cost of living; which paints a challenging picture going into the prospects of 2021,” Mr Zulu said.