Axe will fall on importers of refined oil, warns Minister
By BUUMBA CHIMBULU
GOVERNMENT has warned of stern action against those found importing refined oil as this is killing the local industry.
Agriculture Minister Dora Siliya, said the government would not allow any imports of refined oil as it was hindering the growth of the local industry.
Ms. Siliya said this move was aimed protecting the local industry whose large market share had been taken up by imported refined oil.
"The position of the ministry now is that we are not allowing finished products in the country except where there is a direct permit given by the minister and we do know that there have been loopholes where oil has been coming through the borders and yet in the last three months no permit was given,
“If any of them is found wanting, believe me, we will take out very stiff action so that we make them an example for others,” Ms. Siliya said.
She was speaking when she met with the edible oils association in Lusaka yesterday.
Ms. Siliya also said Government would further study the proposal from oil companies to reduce the 16 percent Value Added Tax (VAT) to about 25 percent.
The minister emphasised that Government was keen to ensure it protected the local industry because it paid taxes and created jobs.
“We are in the process of formulating a budget now and I believe as a ministry we will be making a strong case to the Ministry of Finance on the issue of the 16 percent VAT,
“We did receive a proposal from yourselves so we consider 25 percent VAT tariff on importation on refined products, this is a matter we need to study further. We want to see what instrument the Ministry of Finance can use so you do not lose as local producers,” Ms Siliya said.
Speaking earlier, the ZAM chairman, Dharmesh Patel, complained that in countries such as Tanzania, Botswana, South Africa, Malawi and Zimbabwe, their governments had removed VAT on locally produced oils.
Mr. Patel explained that this move had since promoted local participation in the industry.
“For the past five years, production and processing capacity for edible oils in the country has drastically improved to about 700. 000 per year. Due to bumper harvest on soy beans in Zambia, producers will take advantage of that,” he said.