HIGH COST OF LIVING IN THE PRACTICAL SENSE
When we urge the government to address the issue of high cost of living, we are branded anti Mr Hakainde Hichilema and that we criticise his government without being objective.
When we say we need to revisit the mining concessions and tax waivers to improve dollar inflows to the treasury, which in turn can stabilise or improve the exchange rate, we are told we don’t think and understand economics.
When we caution government against heavy external borrowing and increase domestic revenue mobilisation through industrialisation, we are told how the PF borrowed recklessly instead of addressing the continued current borrowing. Each time the exchange rate depreciates, we need more Kwacha for external debt servicing.
Here is the reality: casual workers in farming communities get paid around K50 per day if not in permanent employment or between K800 to K1,500 per month when you are a permanent employee.
K50 is now equal to $1.77 per day at the current exchange rate of K28.3
K800 is now equal to $29 per month worth of a salary.
K1,500 is now equal to $53.
Translate your own salary in Dollars, and you will understand why you are really struggling, noting that Zambia is import dependent and hence most goods are purchased outside Zambia in Dollars.
Most mind-boggling if you earn $53 (K1,500) monthly salary or $53 multiplied by 12 months, a farm worker receives $636 per annum.
$2 billion of tax waivers per annum can employ 3 million farm workers. This is the reality on the issue of tax incentives. You are depriving Zambians to improve their well being; through the provision of improved salaries, infrastructure, social amnenities, education, health, and so on and so forth.
Finally, we believe that business or FDI is attracted through ease of doing business in a particular jurisdiction such as, access to clean water, electricity, roads, air transport, good education and health facilities, communication systems, stable political environment, safety to mention but a few, than this misplaced belief that tax incentives are a precursor to attracting FDIs at the expense of depriving 3 million farming jobs.
Food for thought!
Fred M’membe
President of the Socialist Party