Recommendations for reducing the price of cement: VAT suspension measure, tax deferral, ECOFIN Commission consultation
The construction sector plays a crucial role in the economic growth of a country. However, rising cement prices may hamper the development of this vital sector. This is why the Deputy Prime Minister, Minister of National Economy, Vital Kamerhe, submitted recommendations during a meeting of the Council of Ministers.
Vital Kamerhe’s main recommendation is the renewal of the measure to suspend Value Added Tax (VAT) in the cement and automobile sectors. By suspending the collection of VAT, he hopes to counter the increase in the price of a bag of cement on the market.
This price increase is attributed to the reintroduction of VAT, set at 16%, as well as other tax increases. This situation has led to a loss of competitiveness for the country compared to neighboring countries such as Angola and Congo Brazzaville.
In addition to the suspension of VAT, Vital Kamerhe also proposes the suspension of all taxes and increases mentioned. This measure aims to relieve players in the cement and automobile sectors who are facing economic difficulties.
Finally, the Deputy Prime Minister recommends consulting the ECOFIN Commission, extended to the Ministries concerned and cement manufacturers, in order to discuss the problem and find lasting solutions for reducing the price of cement on the market.
By combining these three recommendations, Vital Kamerhe hopes to provide a rapid response to this worrying situation. Reducing the price of cement would be beneficial not only for the construction sector but also for the national economy as a whole.
It is important to emphasize that these recommendations are the result of an in-depth analysis of the situation and discussions with the main players in the sector. The search for solutions to promote economic growth must first and foremost involve close collaboration between the government and relevant stakeholders.
In conclusion, it is essential to take concrete measures to reduce the price of cement in the market. Vital Kamerhe’s recommendations, including the suspension of VAT, the suspension of taxes and the consultation of the ECOFIN Commission, offer a promising outlook for a better future in the construction sector.