Russian-Ukrainian crisis: Nicolas Kazadi chaired the meeting on the conditions of application of the decrees temporarily suspending the collection of VAT

The Minister of Finance, Nicolas Kazadi, chaired his first meeting as interim Minister of Economy on Thursday 28 April 2022 on the implementation modalities of the decrees temporarily suspending the collection of VAT on certain products of primary need. This is in line with the option used at the last meeting of the Economic Situation Committee to find solutions to the external shocks caused by the war in Ukraine, which have caused oil and cereal prices to rise internationally.

This meeting, attended by the Secretary-General for the National Economy, Célestin Twite Yamwembo and market participants, resulted in a decision: the application of new tariffs after certification of unsold stocks, but already subject to VAT that will be refunded by the Treasury . This decision will allow economic operators to lower the prices of certain basic necessities for the benefit of the population.

For Célestin Twite Yamwembo, the goal pursued by the government of the Democratic Republic of Congo is to really achieve a reduction in the price of basic necessities in the market.

“The Minister of Finance, who is at the same time interim Minister of National Economy, practically invited the economic operators, as well as the state services, who intervened in the structure of the prices of the products of large consumption by the fact that the Government of the Republic with regard to what is happening on the international market and thus the quite significant price increase of many products.The government has decided to temporarily suspend the collection of VAT on certain products.And before that, it was a matter of thinking with the economic operators who bought their goods and deliver products under the conditions of application How it will happen because the main goal of the government is to lower prices, so to achieve this there are a number of mechanisms that must be put in place, therefore, the methods of application of the measures taken by the government ”, he explained to the press at the end of the meeting.

Ibrahim Ahmad Issaoui, chairman of the SOCIMEX group, said the government’s decision follows the damaging effects of the Russian-Ukrainian crisis to provide some relief to the population.

“We will once again continue to work with the Ministry’s services, with the Secretary-General of the Economy, in order to consider together how we can try to lower the prices in the market for the population on basic necessities at an affordable price. affordable price”, suggested Ibrahim Ahmad Issaoui.

Among the methods of application of the measures, we can mention: the notification of the measure temporarily suspending VAT by the DGI and the DGDA to taxable persons in order to establish the effective application of this measure, accompanied by a deadline, the submission by market participants of their price structures exempt from VAT to the Ministry of National Economy, the mission of market surveillance by the Ministry of National Economy.

At the last meeting of the Economic Situation Committee, the Government of the Republic also discussed the situation regarding petroleum products. The Economic Conjuncture Committee had pointed out that there was no inventory problem at all. He nevertheless underlines the need to take the necessary measures to cope with the price increases at international level.

“We also had the reports from the Minister of Hydrocarbons on the state of the stock at the country level. He pointed out to us that the situation is relatively good, but a decision needs to be taken quickly to adapt to the price increases. as far as we were at about $80 a barrel in January, now we’re at around $110 a barrel. The oil companies will struggle to keep up. The Prime Minister instructed him on the talks with the oil sector operators and to to see the possibility of urgent imports and the formation of the strategic reserve for the country. This is the work he is completing,” revealed the Minister of Planning State Christian Mwando Nsimba Kabulo.

Clemens MUAMBA

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