Bus tax, a direct attack on Zambians – Siulapwa

By NATION REPORTER

GOVERNMENT’S tax on buses is a direct attack on Zambia’s poor lot, Daimone Siulapwa chairperson of the SMEs Association of Zambia has said.
Writing in his personal capacity, Mr Siulapwa, who is also a political analyst, also accused UPND of abandoning most of its loyal members.
Mr Siulapwa said the recent decision by Government to hike taxes on bus owners represented a misguided approach that, in effect, would be nothing short of catastrophic for the country’s already struggling economy.
He said by imposing new tax rates on buses based on their seating capacity, the government was directly targeting public transportation, which was primarily used by low-income Zambians.
“This tax hike isn’t just a burden on bus owners; it’s a financial strain on every Zambian who relies on affordable transportation and, ultimately, an indirect attack on the already stretched incomes of our nation’s most vulnerable citizens,” Mr Siulapwa said.
He said hiking taxes on bus owners inevitably meant an increment in transportation costs across the board.
Mr Siulapwa said bus operators will not shoulder additional taxes but will instead be forced to pass them on to passengers in form of higher fares. He said in turn, passing on costs to the user end will raise the cost of goods and services, as transportation costs were a significant factor in pricing.
“Zambians already face high costs for basic goods, and this move will only make life harder. By increasing transportation expenses, the government is pushing families to make impossible choices about where to allocate their limited resources.
Let us not pretend otherwise: this tax is an assault on the poor, who are the backbone of our public transportation sector,” Mr Siulapwa said.
He said SMEs which are the lifeblood of the economy, will be among the hardest hit by this new tax. Mr Siulapwa said the vast majority of workers employed by SMEs rely on public transportation to commute.
He said there will be an increase in unemployment as SMEs will be forced to trim down their workforce inevitably and will have severe repercussions on a nation still reeling from a fragile economy.