Q FM Africa's Modern Radio
The Jesuit Centre for Theological Reflection (JCTR) says there is need for good leadership and consistent economic policy from the new administration of President Edgar Lungu even as they settle down.
The JCTR in a statement notes that the conflicting statements from the President, the Minister of Finance and the Minister of Commerce on the new mining tax regime as to whether to subject it to revision do not reflect well on the Government and risk the stability of the economy and cost of living for the majority Zambians.
The Centre says it should be realised that lives of people are at stake and so care must be taken in handling the issue of mining.
The JCTR says the leadership that has been exhibited on the impasse surrounding the new mining tax regime however does not inspire confidence and is a source of concern.
It says this is of serious concern for the Centre due to its adverse impacts on the livelihoods of the mine workers as well as government revenues.
The JCTR observes that while on one hand the jobs of many hang in the balance as the mining companies leverage them for a more favourable tax regime, on the other hand Government’s 2015 budget risks being unbalanced.
Meanwhile the January 2015 Basic Needs Basket for Lusaka stood at K3, 793.59.
This shows a significant decrease of K111.63 from the month of December 2014 which stood at K3, 905.22.
The JCTR attributes this to decreases in the cost of food items such as that of Kapenta which decreased by K67.65 from an average unit cost of K139.08 to K114.90 per kg, Dry fish which decreased by K34.10 from K124.81 to K78.22 per Kg and Beans which reduced by K16.03 from K32.89 to K25.51 per Kg.
The JCTR has therefore called on government to come up with a clear direction for mining taxation as this could help ease the troubles currently being faced with the falling Kwacha and eminent rising interest rates that would further push up costs of various items on the Basic Needs Basket.
The Centre adds that Government should also be concise and comprehensive in reducing the cost of living, not just in the short term but find lasting solutions to inconsistencies in the cost of living.