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GOVT URGED TO REVIEW TAX REGIME ON PETROLEUM PRODUCTS

CONSUMER Unity and Trust Society (CUTS) says government needs to review the tax regime on petroleum products which is pushing prices upward.

CUTS Programme Officer Kangwa Muyunda says Zambia has one of the highest tax regimes on fuel in the region and consequently one of the highest fuel prices.

Muyunda says the pricing of petroleum products was influenced by the volatility of international oil prices and the exchange rate of the Kwacha to the United States dollar.

She  says the government could consider reducing or scrapping off some of the institutional taxes and duties levied which adversely affect the final price of fuel.

Muyunda says it was also important for the Energy Regulation Board (ERB) to deal with illegal fuel vending.

“Due to the higher fuel price in Zambia compared to its neighbours, Oil Marketing Companies (OMC with service stations in border towns have complained of rampant illegal fuel vending which has grown to levels that makes the illegal fuel vendors significant in those markets,” she says.

She further says measures have to be put in place to improve transparency with regards to procurement in the sector.

Muyunda adds that the Petroleum Act and the Petroleum (exploration and production) Act of 2008 needs to be revised as the two re outdated and inadequate.

 


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CUTS ERB OMC