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Saturday, 3 January 2009

Cementing Mozambique...

Mozambique suspended its 10.5 percent tax on cement imports for the next two years to counter rising building costs. As the contruction industry booms, demand for cement has exceeded supply, prompting government worries that the "industry is still not producing enough to satisfy the consumption needs and this has serious implications for the government's public works programme".

Zambia of course has had
had its own problems with cement in the past, thanks to Chilanga' Cement's bulging 80% or so market share, which has been helpfully maintained by the requirement that all cement coming into the country must be charged excise duty at 5% and also pay value added tax (VAT) of 16% per bag. The industry view remains that domestic supply is lagging behind imports, so a reduction in tax could lead to lower prices - well atleast it would prevent these sorts of episodes in the future.

1 comment:

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