With the ever upward increment in fuel prices and rapid depreciation of the Kwacha moving along in auto-pilot fashion, to use one of President Hakainde Hichilema’s most common catchphrases during his opposition times, the Zambia Association of Manufacturers as expected announced that they will pass on the burden on the rise of production following the very steep rise in fuel prices under Hakainde’s administration.
The steep hike in fuel prices from the already very high K29.98 to K34.19 by the government has already resulted in steep rises in bus fares, with more punishing upward adjustments in the cost of living to follow for on some of the most punished people living on the face of the earth right now, the Zambian people.
In press a statement, ZAM president Ashu Sugar argued that the rise in fuel pump prices is affecting the manufacturing sector through distribution costs, saying this was very concerning
“The ZAM President said manufacturers will no option but to pass on the burden to consumers who will in turn have less disposable income,” ZAM stressed in a statement issued by chief executive officer Muntanga Lindunda. “He said the instability in the Zambia’s exchange rate is also affecting manufacturers that import raw materials for value addition in Zambia.”
It is not the easiest of times to be Zambian right now.
We have seen the nonsense where the obtaining prices in the country are being compared with some obtaining in the region for instance, which is just nothing but nonsense, because this UPND is the same administration that argued that leaders were elected to specifically address national challenges and therefore global matters should therefore not be used as an excuse, hence the phrase Bally will fix it.
Hakainde claimed that he had the means and technique having run private business successfully to steer Zambia to greater heights. The Kwacha he lambasted his predecessors on as an opposition leader is today the worst performing currency under his administration. One even questions the wisdom of reducing mineral royalty on the mines when there is actually no need to do that with copper prices relatively stable on the international market at around US$8,374.19.
The Bank of Zambia has tried to put in place several interventions from the Monetary side to squeeze liquidity through implementation of various instruments such as the repo rate for instance, but all that has been in vain and will continue being in vain until the UPND administration puts in place corresponding measures from a fiscal side especially addressing fair taxation from the country’s main foreign exchange earner. We know there will be resistance, and so too there was during Levy Mwanawasa but he did whatever it had to take to benefit the people he led by introducing a windfall tax of 25 percent on the main forex earner, the mines.
However, this might prove difficult under the current scenario given the pay for play that is currently rampant with mining firms giving huge sums to political parties in return for tax holidays and other benefits that could be accrued. This is the sad state we are in, therefore the government is likely to continue squeezing the ever taxed Zambian taxpayers and making them more poor.
It is even more worrying that instead of working to address these challenges, the administration is busy comparing the country’s situation with the situation obtaining in other countries. And they are being joined in this nonsense by the electorate, commonly known as praise singers, who voted them into office because of the serious errors committed by the previous administration. Today they find it worthwhile to give the current administration a pass, when they can clearly see that things are worsening and that they should be the ones to be in the forefront correcting and admonishing the government they elected into office so that they do the right thing and avoid facing the same fate those they voted out faced in 2021.
By Daily Revelation Editor
With the ever upward increment in fuel prices and rapid depreciation of the Kwacha moving along in auto-pilot fashion, to use one of President Hakainde Hichilema’s most common catchphrases during his opposition times, the Zambia Association of Manufacturers as expected announced that they will pass on the burden on the rise of production following the very steep rise in fuel prices under Hakainde’s administration.
The steep hike in fuel prices from the already very high K29.98 to K34.19 by the government has already resulted in steep rises in bus fares, with more punishing upward adjustments in the cost of living to follow for on some of the most punished people living on the face of the earth right now, the Zambian people.
In press a statement, ZAM president Ashu Sugar argued that the rise in fuel pump prices is affecting the manufacturing sector through distribution costs, saying this was very concerning
“The ZAM President said manufacturers will no option but to pass on the burden to consumers who will in turn have less disposable income,” ZAM stressed in a statement issued by chief executive officer Muntanga Lindunda. “He said the instability in the Zambia’s exchange rate is also affecting manufacturers that import raw materials for value addition in Zambia.”
It is not the easiest of times to be Zambian right now.
We have seen the nonsense where the obtaining prices in the country are being compared with some obtaining in the region for instance, which is just nothing but nonsense, because this UPND is the same administration that argued that leaders were elected to specifically address national challenges and therefore global matters should therefore not be used as an excuse, hence the phrase Bally will fix it.
Hakainde claimed that he had the means and technique having run private business successfully to steer Zambia to greater heights. The Kwacha he lambasted his predecessors on as an opposition leader is today the worst performing currency under his administration. One even questions the wisdom of reducing mineral royalty on the mines when there is actually no need to do that with copper prices relatively stable on the international market at around US$8,374.19.
The Bank of Zambia has tried to put in place several interventions from the Monetary side to squeeze liquidity through implementation of various instruments such as the repo rate for instance, but all that has been in vain and will continue being in vain until the UPND administration puts in place corresponding measures from a fiscal side especially addressing fair taxation from the country’s main foreign exchange earner. We know there will be resistance, and so too there was during Levy Mwanawasa but he did whatever it had to take to benefit the people he led by introducing a windfall tax of 25 percent on the main forex earner, the mines.
However, this might prove difficult under the current scenario given the pay for play that is currently rampant with mining firms giving huge sums to political parties in return for tax holidays and other benefits that could be accrued. This is the sad state we are in, therefore the government is likely to continue squeezing the ever taxed Zambian taxpayers and making them more poor.
It is even more worrying that instead of working to address these challenges, the administration is busy comparing the country’s situation with the situation obtaining in other countries. And they are being joined in this nonsense by the electorate, commonly known as praise singers, who voted them into office because of the serious errors committed by the previous administration. Today they find it worthwhile to give the current administration a pass, when they can clearly see that things are worsening and that they should be the ones to be in the forefront correcting and admonishing the government they elected into office so that they do the right thing and avoid facing the same fate those they voted out faced in 2021.
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