The Jesuit Center for Theological Reflections (JCTR) says government needs to review its taxation policy on crude oil so as to mitigate any possible adverse effects on the economy especially if global oil prices continue to rise.
JCTR Social & Economic Development Programme Officer Chanda Chileshe recommends that the government look to promoting alternatives such as gas for industrial use.
Mr. Chileshe notes that as an oil importing country, Zambia continues to suffer due to the volatility of global oil prices.
Mr. Chileshe says reviewing taxation policy can have an effect in lowering fuel dependability and reducing the impact of a fuel hike on locally manufactured commodities.
He further notes that despite the cost of living reduction in the month of October, it still remains high and above incomes of many Zambians who continue to struggle to access basic needs of life.
“According to the living conditions monitoring survey, Zambia’s national poverty levels remain high at 54.4% which means that more than half of our citizens are living in poverty. Increases in inflation compounds this situation by widening the gap between household incomes and cost of living and deprives Zambians a chance of living the fullness of life because they fail to afford basic commodities,” he said.
And the JCTR Basic Needs Basket for a family of five living in Lusaka for the month of October however, has revealed a reduction in the total BNB by K38 from K5, 356.36 recorded in September to K5, 317.95 in October.
Mr. Chileshe says the October BNB did not keep pace with the national inflation because the price reduction recorded in selected items outweighed the price increases in other items.
“Significant decreases for instance were noted in prices of Kapenta which decreased by K18 from K188 in September to K170 in October per kilogram, Beans decreased by K5 from K34 in September to K29 in October per kilogram and Tea bags decreased by K4 from K84 in September to K80 in October per kilogram. Dry bream fish however increased by K5 from K131 in September to K136 in October per kg,” he said.