Govt urged to reform taxes governing the petroleum system

Policy Monitoring and Research Centre (PMRC) has recommended that Government revisit and reform the controls and taxes that govern the petroleum system in order to allow greater competition in the market, which ultimately eliminate any expensive procurement procedures.

In an analysis focusing on the processes of fuel procurement in Zambia, PMRC Executive Director Bernadette Deka says her organisation believes the long-term solution for the petroleum sector in Zambia is to liberate it.

Ms Deka says Oil Marketing Companies of the private sector need to be responsible for the procurement of the country’s petroleum needs.

She notes that this may reduce the financial burden on the treasury and possibly free up resources to other sectors.

Ms Deka says government should stiffen measures to ensure that there is uninterrupted flow of petroleum products into the country to guarantee supply ensure stable and predictable prices.

She adds that government must also consider reducing the rate of taxes charged on petroleum products.