Cape Verde: Cape Verdean government approves reduction of customs tax on grain

23 May 2008

Praia, Cape Verde, 23 May – The Cape Verdean government is due to send a law proposal to parliament to reduce customs tax on grain in order to minimise the impact of high grain prices, the spokesperson for the Council of Ministers said Thursday in Praia.

Minister Sara Lopes said that the proposal, approved by the Council of Ministers, was part of a number of measures that the government was putting in place so that the high price of goods on the international market would not have a great impact on the neediest sections of the population.

As well as reducing the customs taxes and costs of port operations and inter-island transport, the government has outlined a number of measures to reduce the impact of the grain crisis.

Lopes noted that the existing grain stock had allowed the country not to feel the impact and that the situation would remain stable until August, but after further imports in July the population would be faced with a price rise.

The government’s projection is that even with all these measures in place, if grain prices continue to increase on the international market, it will not be possible to prevent grain prices from rising in the country. (macauhub)