FEC/Tshopo judges suspension of provincial taxes on food insufficient

The Federation of Congolese Enterprises (FEC) in the Tshopo province has deemed the provincial government's decision to suspend taxes on foodstuffs as only a partial solution. While acknowledging the effort to combat rising prices of essential goods like rice and cassava, the business organization argues that the two-month tax freeze is not enough to ensure lasting market stability.

Robert Odundja, the vice-president of FEC Tshopo, stated that the provincial authorities are addressing the symptoms rather than the root causes of the price crisis. He highlighted several overlooked factors contributing to the issue, including demographic growth, which increases demand according to the law of supply and demand. Odundja also pointed to the need to remove barriers on agricultural access roads as a critical step.

Furthermore, Odundja recommended that farmers receive training to diversify their subsistence crops. The provincial finance minister had implemented the tax freeze last Friday in response to escalating prices of palm oil and maize. However, some traders are concerned that without concrete actions to improve access to agricultural routes, prices could surge again once the tax truce ends.