Zambian President Levy Mwanawasa has cautioned the commercial farmers in his country against being misled by their leaders over appeals for zero rate tax on agriculture products because the zero rate will not help develop the country.

He said in Luapula province on Friday that removal of the 15 percent tax called for by the Zambia National Farmers Union (ZNFU) will impact negatively on consumers, according to local reports on Saturday.

When he met with ZNFU members two weeks ago they made the appeal for the tax cut, said Mwanawasa.

He said there is great need for ZNFU to urge its members to reduce price of their products in view of the continued appreciation of kwacha, which is 3,200 to one U.S. dollar compared with 4,700 to one dollar one year ago.

Meanwhile he warned the traders reluctant to reduce prices of their products in the wake of the kwacha gain not to push their luck too far.

The president said the government has abolished price controls to allow traders to reason on their own and pass on the benefit to consumers.

Source: Xinhua