Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed has hinged the country’s increased inflation on the cost of transport.
Speaking at a virtual consultation and stakeholder engagement to discuss the economic and fiscal policy drivers underpinning the Finance Bill 2020 on Friday November 13, the Minister said the draft bill which seeks to reduce transportation cost in the country added that it contained “some interesting new proposals” which includes “fiscal relief for mass transit which is designed to provide support to mass transit by reviewing the duties regime”.
“The essence why this is being done is we recognise transportation as one of the major cost drivers in the economy.
“If you look at the rate at which our inflation is going, and you disaggregate the components, you will find that inflation is largely driven by transport cost. So, the essence here is to reduce transportation cost so that businesses will have ease and pass benefits to eventual consumers.”