Zambia has become the latest southern African country to introduce emergency measures to cushion its economy from rising fuel costs after Cabinet approved the removal of Value Added Tax and a three‑month suspension of excise duty on fuel imports starting 1 April.
Chief government spokesperson Cornelius Mweetwa said the decision followed a sharp increase in global crude oil prices driven by supply disruptions linked to the conflict in the Middle East.
He said the government had designated the country’s unstable fuel supply as an emergency and acted to prevent a steep rise in pump prices that would have worsened the cost of living.
“In this regard, Cabinet has approved the zero-rating of Value Added Tax and the suspension of excise duty on petrol and diesel for three months,” Mweetwa said.
The Middle East conflict has rattled global energy markets for more than a month, with attacks on shipping routes and production risks pushing up international oil prices.
Zambia becomes the second country in southern Africa to respond with temporary tax relief to shield consumers.
Earlier this week South Africa slashed its general fuel levy for a month to cushion consume from the impact of rising oil prices.
Mweetwa said Zambia’s measures are intended as short‑term relief for households, businesses and key productive sectors facing rising operational costs.
He added that without the tax suspensions, April pump prices would have increased significantly.
He urged the public to remain calm as the government monitors global developments and stands ready to take further action if necessary to protect economic stability and citizens’ wellbeing.
JN/APA