LUSAKA, July 3 – Zambia has extended the suspension of excise duty and Value Added Tax on petrol and diesel imports for another 90 days as it moves to keep fuel prices stable and ease pressure on households and businesses.
The extension took effect on July 1 and will remain in place until September 30, according to the country’s Ministry of Information and Media.
The tax relief was first introduced at the end of March for an initial three month period beginning in April. At the time, the government said it expected to forgo about $200 million in revenue to help cushion the impact of rising global fuel prices linked to tensions in the Middle East.
As a net importer of energy, Zambia has been among the African countries most affected by higher international oil prices and the disruption to global supply chains.
The government said extending the measure is aimed at limiting the impact of elevated fuel costs on consumers and businesses while helping to keep pump prices from rising further.
Information and Media Permanent Secretary Thabo Kawana said the government would continue introducing measures to protect the economy from external shocks and reduce the burden of higher energy costs on citizens and businesses.
