By JUDITH NAMUTOWE? –
UNION Gold Zambia has praised the Government on its decision to remove five per cent customs duty on aviation fuel saying it will spur growth in tourism.
Presenting a paper on the 2015 National Budget, Union Gold Zambia chairperson Mark O’Donnel said he was pleased to note that the Government had in the 2015 Budget addressed aviation fuel, which had been impacting negatively on the growth of tourism sector.
Finance Minister Alexendar Chikwanda proposed the removal of the customs duty on?on jet fuel.
Presenting the Budget to Parliament on Friday, Mr Chikwanda said the principal objective of this measure was to reduce the costs in the aviation industry.
The move was further intended to assist in making Zambia a regional hub for air traffic.
In addition to increasing the number of connections, it is expected that players in the aviation industry will pass down an element of the savings to the consumers.
Mr O’Donnel said the tourism industry was not performing to its full potential, due to the high cost of aviation fuel in the country.
He noted that yellow fever requirement had also materially damaged the tourism industry because South Africa and Botswana required that travellers to Zambia should be in possession of yellow fever cards.
“The tourism industry is also affected by the European Union (EU) aviation ban. Without cheaper affordable airline in and outside the country, growing tourism is going to be difficult to achieve,” Mr O’Donnell said?Since the departure of British Airways and KLM from the Zambian route, for the first time in more than 60 years, Zambia had no direct flight to Europe, due to high cost of aviation fuel.
“I am pleased to note this has been recognised and a five per cent customs duty has been taken off the aviation fuel. It is essential that we develop new routes in Zambia that makes it cheaper and affordable for travellers,” he said.
He said this would make it beneficial not only to Zambia but foreign investors.