THIS GOVT FINALLY ADMITS THAT TACTICAL SUBSIDIES ARE NECESSARY TO CUSHION CONSUMERS – Fred M’membe

THIS GOVT
FINALLY ADMITS THAT TACTICAL SUBSIDIES ARE NECESSARY TO CUSHION CONSUMERS

We have consistently reminded the UPND government to put measures that cushion the rising prices of essential goods and services to avert citizens from experiencing the unbearable high cost of living. In return, the straight answer we have received until today is that everything has to be cost reflective.

Today, the Energy Regulatory Board (ERB) has introduced a tax waiver by suspending Excise Duty and Zero rating VAT on Petrol and Diesel for 3 months to cushion consumers from the high global fuel prices. Effectively, the government has introduced a tactical subside on Petrol and Diesel, which they called their colleagues in PF as being irresponsible. Finally, a humble pie has been eaten.

Similarly, consumers are complaining of the high depletion rate of ZESCO units. Instead, we were told a non ending investigation is underway. The truth is that consumers are saying we are struggling to afford these high ZESCO tarrifs. Let’s hope a response in the same manner as what has happened today will follow.

We also suspect that the response on subsidizing fuel is linked to upcoming elections. Otherwise, we would have been told that it is outside the government’s control, and fuel rates will be cost reflective, but alas a U-turn.

To the consumer the effective price increase in fuel say diesel in the absence of removing the Excise Duty and Zero rating VAT will have been between K10-12, but because of the much needed tactical subsidy we have consistently recommended, it’s only K6,53. The question is: will this have been done had it not been for looming elections?

By contrast, kerosene and jet fuel has not been exempted from the tax waiver. Hence, the higher price increases exceeding K12 per litre.

Fred M’membe
People’s Pact 2026 Presidential Candidate and President of the Socialist Party