The Consumer Unity and Trust Society (CUTS) says the government’s decision to suspend excise duty on imported ethanol will make Sanitizers and other medicine-related activities affordable for consumers.
CUTS Research Assistant Aquila Ng’onga said reducing the provisions of Statutory Instrument (SI) 90 will also reduce the cost of production for local producers.
Mr Ng’onga, however, urged the Zambia Revenue Authority to also consider reducing tax rates in priority sectors to allow them to continue operating during this difficult time.
He observed that across the world, COVID-19 is having a negative effect on the economy and that in the face of the crisis, one of the economic impacts the country may soon start to face is consumers having limited access to affordable, quality goods and services.
“In as much as it is hard to determine how long this situation will be, We also recommend that the ZRA consider reducing income tax rates to mitigate the negative effects of the inflation rate as well as allow consumers to play a role in stimulating the economy,” Mr Ng’onga said.
Mr Ng’onga encouraged Government to be proactive and look into ways to ensure that the situation does not get out of hand because Zambia’s road to recovery will be highly dependent on how proactive Government will be in its response.