EXTENTION OF FUEL SUBSIDIES ON PETROLEUM PRODUCTS BY 3 MONTHS WILL NOT IMPACT ONGOING IMF TALKS
By Chileshe Mwango & Micheal Kaluba
Economist Chibamba Kanyama says government’s decision to extend and maintain fuel subsidies on petroleum products which were supposed to come to an end on June 30, for three months, up to September 30 will not have an impact on the ongoing international monetary fund -IMF- discussions.
Last week, Energy Minister Pater Kapala disclosed that value added tax-vat- and import duty will remain zero rated on diesel and petrol, while excise duty is waved on diesel and reduced on petrol, a decision some stakeholders say will jeopardize the ongoing talks as it is against the IMF conditions.
But in an interview with Phoenix News, Mr. Kanyama has dispelled these fears saying the fiscal decisions that government is currently making are communicated to the IMF and other critical creditors.
Mr. Kanyama says government is making consultations and cannot be careless to make such decisions hence the need for the public not to worry.
Meanwhile, the Oil Marketing Companies-OMCs say government’s extension of tax waivers on the importation of petroleum products for the next 3 months has averted a possible fuel shortage in the country.
The OMCs are of the view that while the extension of waivers sees government foregoing revenue collection that could have been channeled to critical sectors of the economy, it is to the benefit of both the end users and the Oil Marketing Companies and will result in consistent and secure supply of the commodity, private investments and a thriving sector for at least three months.
OMCs President Kafula Mubanga tells Phoenix News that oil marketing companies would have faced a lot of difficulties in the fuel supply chain if government had not extended the tax waiver on the importation of petroleum products as they would have not managed to import petroleum products due to the existing minimal profit margins which he said were not attractive enough for sector players to import the products.
This PF Kaloba has left our country in serious Fiscal situation!
Imagine we now have to get permission from our creditors in order to get out of this PF mess of debt?
I remember many economists warning the PF government to cut down on their borrowing but they wouldn’t listen. Borrowed money was too sweet because it got straight into their personal pockets! This was PF on Steroids!
What is particularly unfortunate is the same persons who put this country in this mess don’t show any remorse for what they have done. If anything, they have become the loudest critics of those tirelessly trying to resolve our debt crisis for our economy to breathe again. And what is most unfortunate is some citizens thinking these people who put us in this mess are better than those who are trying to clean up the mess, really?
Fear people who work like Kasebanya (Lucifer the fallen one). He leads you into problems and once you are there, he starts accusing you of the sin he led you into. Kasebanya is the best description of the Devil’s Modus Operandi. That’s why the Bible calls him the Accuser of the brethren!
Beware of the agents of Kasebanya! They are charming, intriguing, shrewd and desperately wicked!
Do you want to go back to Pangas?
The choice is yours!
It will get worse before it gets better, though we bible students will tell you that things will progressively get worse globally as foretold by the Son of man in Matthew 24!
Therefore don’t put too much faith in mortals! They’ll always fall short!