Africa-Press – Zambia. He said the current subsidy government was spending on fuel was over US$67 million per month and over US$809 Million at the expense of other social sector needs.
The finance minister said this at a joint briefing with IMF mission chief to Zambia Allison Holland held via Skype. He said there would no fuel subsidy in the 2022 budget.
He this was a conscious choice governmnet needed to take. He said the previous governmnet froze increaments of fuel prices due to fear of losing elections but that this has left governmnet indebted from their failure to pay.
Dr Musokotwane said that the increament of fuel prices and electric tarrifs was certain but that his governmnet had human beings who were considerate. He said there was no need for Zambians because governmnet would try to moderate the increaments.
He said once governments shifts costs of fuel to motorists tanks, the said money would be channelled to social sector needs like building more schools.
Asked why the governmnet had increased huge tax concessions on mines when it could maximise revenue from mines, Dr Musokotwane agreed that governmnet will lose US$ 182 Millon per as a result of tax concession but that this was not adequate compared to what government would benefit from. The finance minister said tax concessions would increase productions and earn more revenues from the section
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