Zambia extends petrol and diesel tax exemptions until September

- Zambia has extended for another 90 days its suspension of excise duty and Value Added Tax on petrol and diesel, the information and media ministry said on Wednesday.

  • The ministry said the extension would take effect from July 1 and remain in force until September 30.

  • The Southern African country approved at the end of March a zero-rating of VAT and suspension of excise duty on petrol and diesel imports for three months starting in April.

  • Around mid-April, the government said it would lose about $200 million in revenue during the three months it suspended the fuel taxes to cushion the impact of the Iran war on households and businesses.

  • A net energy importer, Zambia is one of many African countries hard-hit by surging global energy costs.

  • The government said the measure was intended to continue cushioning citizens and businesses from elevated fuel costs, helping to stabilise pump prices while mitigating the effects of the crisis in the Middle East on global oil prices and supply chains.

  • Information and Media Permanent Secretary Thabo Kawana said authorities would continue implementing measures designed to help the country navigate external global shocks while reducing the burden of higher fuel costs on households and businesses.