Government Zero-Rates VAT on Fuel Imports Amid…

Government has approved the zero-rating of Value Added Tax (VAT) on fuel imports and the suspension of excise duty on petrol and diesel for a period of three months, as part of urgent measures to stabilise the economy. Chief Government SpokespersonCornelius Mweetwaannounced the decision in a statement, following a special Cabinet meeting convened by PresidentHakainde Hichilemaat State House. Mr Mweetwa said the measures, which take effect at midnight, are aimed at cushioning citizens and businesses from rising fuel costs driven by global market pressures.

He explained that Cabinet had also declared the current fuel supply situation in the country an emergency, citing disruptions in global oil supply chains. According to Mr Mweetwa, the developments have largely been triggered by the ongoing tensions in theMiddle East, which have led to increased international fuel prices and mounting pressure on domestic pump prices. “Without these interventions, pump prices for April 2026 would have risen significantly, worsening the cost of living,” he said.

He added that the temporary tax relief measures are part of short-term interventions designed to protect households, businesses, and key productive sectors from the impact of escalating fuel costs. Government has since urged the public to remain calm, assuring citizens that authorities are closely monitoring the situation and stand ready to implement further measures if necessary to safeguard the economy.