Khartoum — A committee from the Sudanese Federation of Chambers of Industry threatened on Tuesday to take escalatory steps if it's demands to lower industry costs were not responded to by the government within seven days.

During a SUNA press conference, Secretary-General Abdul Rahman Abbas from the Steering Committee of the Federation of Sudanese Chambers of Industry said both stop sales and production of goods would stop unless their demands were met.

Their central demands were the abolition of production taxes and the adjustment of customs in a way that corresponds to the dollar so that people's purchasing power improves, Abbas said. He also called for the end of fuel taxes.

"Catastrophic decision"

Sudan's Key Industrialists have been discussing several issues, Abbas announced, including the "catastrophic decision" taken by the Ministry of Finance to move the Dollar rate exchange from SDG 445 pounds to SDG 564 pounds. With service fees included, Abbas claimed this will lead to 35% rise in production costs.

Rising inflation prompted the Central Bank of Sudan on Monday to issue a new banknote of SDG 1,000 in June. According to economic and political analyst Hafiz Ismail, who was interviewed on Radio Dabanga's Sudan Today about Sudan financial situation, recent increases in taxes and customs duties is likely to further drive inflation.

The general rise in the cost of production will be felt most by those buying the products, Abbas stated, adding that more than 80% of Sudan's factories operate with capacities less than 20%.