The Centre for Trade Policy and Development has called on Government through relevant agencies to conduct a review of the current tobacco taxation framework with the aim of increasing taxes applicable to tobacco and nicotine products.

CTPD Researcher Legal Chileshe Mange says as a signatory to the World Health Organization Framework Convention on Tobacco Control, Zambia has assented to implementing the guidelines without
reservation.

Ms Mange says these guidelines include developing harm reduction strategies to reduce access to and consumption of tobacco.

“In Zambia, the population highly at risk to Tobacco consumption is the youth, particularly adolescents. The United Nations Development Programme (UNDP) and World Health Organisation
(WHO) have established that increasing the excise tax on tobacco products is an effective way of reducing tobacco consumption”, she said.

Ms Mange said this is evidenced by the reduced tobacco consumption among populations in countries such as Australia, Kenya and South Africa
that have systematically increased excise taxes on tobacco products.

She said the Australian government has raised taxes on tobacco by an incremental rate of12.5% annually from 2017-2020.

Ms Mange said currently, the average pack of cigarettes costs an equivalent of US$34.

She said the country is expected to raise approximately US$ 4.7 billion between 2017 and 2020 from tobacco taxes adding that the number of tobacco smokers and nicotine users has more than halved since 1995, when the government first implemented a more stringent tax regime.

Ms Mange said according to the UNDP, increased excise taxes on products such as tobacco can raise fiscal revenues, address market failures and replenish lost economic output from tobacco related death and disease as well as the externalization of avoidable health costs for society to treattobacco-related diseases.

She said governments therefore require sound tax policies and systems
that ensure that they achieve both fiscal and public health objectives in relation to tobacco.

Ms Mange added that the WHO also recommends that raising tobacco excise taxes to more than 70% of the retail price is among the most effective and cost-effective tobacco control interventions saying this is therefore the recommended global benchmark in relation to excise duties on tobacco and
tobacco products.

She said signatories to the WHO FCTC Zambia inclusive are therefore encouraged to take steps towards achieving this benchmark.

Ms Mange said the Tobacco Products and Nicotine Products Control Bill, 2018 (which is domestication of the WHO-FCTC) is scheduled to be tabled before Parliament in due course and CTPD
recommends that Government simultaneously review tax legislation in respect of tobacco products to ensure harmonization with the proposed legislation and the global recommended benchmark.

She said there is also need for policy and legal cohesion among the different sectors in order for tobacco control to be effective and has urged relevant Government agencies to work together and begin to table the appropriate tax legislation.

The Policy Monitoring and Research Center has urged the Ministry of Finance to give regular updates to the nation on the Sinking Fund and any other viable proposed redemption strategy especially for the Euro-bonds.

The PMRC says this must be done taking into consideration that the bullet payment of the first Eurobond amounting to US $750 million falls due in 2022.

PMRC Executive Director Bernadette Zulu has noted the silence surrounding the Sinking Fund and other strategies which she said should not be the case.

Mrs Zulu said the Ministry of Finance must further continue engaging the IMF for technical assistance and possible bailout package that will assure and signal stability of the economy to bondholders and investors.

And regarding the Farmer Input Support Program, Mrs Zulu has urged the Government through the Ministry of Agriculture to develop an exit and graduation strategy for all beneficiaries to ensure sustainability of the programme in the long term.

In view of the approved the New Energy Policy 2019, Mrs Zulu re-echoed the need to improve the creditworthiness of ZESCO as the sole off-taker in order to instil confidence in private sector investors that the organization would purchase energy generated.

She added that in light of the challenges faced by Government in meeting commitments on the Social Cash Transfer in 2019, Government needs to ring-fence funds for social protection purposes to prevent delays in disbursements.

Democratic Party President Harry Kalaba says Zambia’s economy is on the brink of total collapse.

Mr Kalaba says with the rising cost of staple food and the total lack of access by the common man, this has placed Zambia under a severe form of food insecurity with mealie meal costing K150 to K200.

He said while the government continues to deny the food insecurity of the country with millions going without food, the same government seems to acknowledge food
insecurity of an area which is having a bye election, and taking relief food in exchange for votes.

Mr Kalaba says the debt burden continues to rise reaching $11.2 Billion dollars as of December 2019 and said the reckless borrowing by the leadership while
disregarding the constitutional requirement of having parliament approve debt has put the country’s economy in jeopardy, with borrowings that are motivated by self-interests and corruption.

He has regretted that Zambia’s bonds are the worst performing on the international market, even worse than countries recovering from wars and conflicts.

Mr Kalaba said as at 15th December, 2019, Zambia found itself listed on the African Development Bank’s Sanctions list for failing to honor $1.4 million Loan obligation while Diplomats in Zambian missions are going for months without salaries.

“Unemployment continues to rise with almost half the people being unemployed. The Youth our most prized asset of development continue to languish in the streets with no possibility of a job anywhere. While we continue to create employment for other countries, there is an
ever increasing number of graduates being churned out and entering the employment market with a lot of anxiety and yet the PF government under President Lungu does not seem to be providing them, with any hope at all”, he said.

Mr Kalaba has also noted with regret that the energy crisis continuesto persist with Zesco increasing tariffs by 200% in the last 2 months, for power which it doesn’t even have.

He said Load sheddingof more than 4 hours for any responsible government is catastrophic.

Mr Kalaba, the former foreign Affairs Minister said the impact of the increase in the energy price and the shortage of power has had significant inflationary pressure on the Zambian economy with reduced operational effectiveness of the industries.

“In addition, Fuel prices have hit sky high with ripple effects on food and every other industry including increased bus and taxi fares. Mr. Edgar Lungu, Mr. President, Food insecurity and power insecurity
border on national security. Please work on correcting the situation urgently, and engage and reassure your people with strategies of how you are working to correct the situation”, He added.

Mr Kalaba advised President Edgar Lungu to talk his people directly and not through his press assistants Isaac Chipampe.