WE WILL REINTRODUCE SUBSIDIES AND BORROW MORE SAYS TOONSE ALLIANCE

WE WILL REINTRODUCE SUBSIDIES AND BORROW MORE SAYS TOONSE ALLIANCE. Toonse Pamodzi Alliance says it will immediately reduce the price of fuel by reintroducing fuel subsidies if elected into government. The Alliance says it will also remove taxes on talk time, Airtel Money and other selected items, while borrowing money to keep the economy running […]

WE WILL REINTRODUCE SUBSIDIES AND BORROW MORE SAYS TOONSE ALLIANCE.

Toonse Pamodzi Alliance says it will immediately reduce the price of fuel by reintroducing fuel subsidies if elected into government.

The Alliance says it will also remove taxes on talk time, Airtel Money and other selected items, while borrowing money to keep the economy running and put more money into the pockets of Zambians.

Toonse Pamodzi Alliance says its approach will be simple: make essential goods cheaper for ordinary people, even if government has to borrow more money to cover the difference.

For example, the Alliance says if the real cost of one litre of fuel on the international market is K26, government could make motorists pay only K17 at the filling station.

This means that when a motorist buys one litre of fuel, they pay K17, while government finds the remaining K9 to cover the full cost of K26.

In very simple terms, imagine a loaf of bread costs K26, but government tells you that you only need to pay K17.

Government would then find the remaining K9 for the shopkeeper so that you can take the bread for K17.

However, according to the Alliance’s proposal, the government would borrow that K9 from lenders to cover the difference.

If that borrowed money attracts an interest rate of 70 percent, government would eventually have to pay back the money borrowed plus a large amount of interest.

Toonse Pamodzi Alliance says it is prepared to borrow money to subsidise essential goods and services, even if this means government will have to pay more money to lenders in the future.

The Alliance says the objective is to reduce the cost of living, increase money in circulation and ensure that ordinary Zambians have what it describes as a more balanced life.

-Zambian Watch News.