By Isaac Mwanza
“We removed fuel susbisides to pay for free education” – President Bally
“Fuel subsidies is still there ” – Minister Finance
A subsidy is a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low. So can we say that fuel was subsidised when it had some taxes under the PF regime? A tax makes fuel expensive, and as such, it is not a subsidy when it is added.
UPND Spokesperson said it was one of the conditionalities by the IMF for the Zambian Government to remove subsidies. Question is, did the IMF ask Government to remove taxes that would make fuel cheaper? What exactly was the subsidy which was removed then?
Zambians cannot continue guessing which fuel susbisy was removed by Government in which the country was able to save $809 million dollars Minister Musokotwane had told the nation about.
Just recently, Vice President Nalumango told Parliament that government is not considering reintroducing subsidies which were removed to cushion the fuel rishing prices.
So if the Vice President, and many others who are opposed to the reintroduction of the removed subsidies meant to lower fuel prices believe what they are saying, the subsidies they are referring to are not taxes that would increase fuel prices, once reintroduced.
No one knows which subsidy was removed that helped us to save money for free education, social cash transfer, etc. I don’t think that even my good friend Anthony Bwalya believes the story that there was a subsidy which made fuel cheaper, which was removed.
The biggest trouble we have is that we have an extremely beautiful Chief Government Spokesperson who cannot clarify issues. No wonder the Spokesperson for the Ministry is one now taken up the role of Chief Government Spokesperson. This is an issue the Minister should have been making the public understand which subsidies were removed such that when they are reintroduced would lower the prices of fuel.
In my view, government has not removed any subsidies that made fuel expensive. Government removed taxes that were making fuel expensive then.