– Govt removes tax on fuel to cushion public from adverse effects of rising costs
PHILIP CHISALU
Lusaka
GOVERNMENT has declared the current fuel supply situation in the country as an emergency.
To cushion households, businesses and key productive sectors from the adverse effects of rising fuel costs, Cabinet has since approved the zero-rating of Value Added Tax (VAT) and suspension of excise duty on petrol and diesel for three months, effective today.
Announcing the resolutions last evening, Chief Government Spokesperson Cornelius Mweetwa said President Hakainde Hichilema called for a fourth special Cabinet meeting yesterday.
The meeting was to deliberate on matters aimed at enhancing national economic and social development for the good of Zambians.
Mr Mweetwa said the zerorating of VAT and the suspensionof excise duty on petrol and
diesel are short-term interventions aimed at mitigating the impact of escalating international crude oil prices on Zambia’s economy.
He said if Government did not take these measures, fuel pump prices for April would have been significantly higher with corresponding adverse effects on living conditions of people.
“Cabinet noted with serious concern the continued conflict in the Middle East, which has led to disruption of the global oil supply chain, resulting in increased international fuel prices and exerting upwards pressure on domestic pump prices,” Mr Mweetwa said.
He urged the public to remain calm as Government continues to monitor the situation in the petroleum subsector.
“Government stands ready to take further action where necessary to protect the economy and the welfare of citizens,” Mr Mweetwa said.
Meanwhile, the Energy Regulation Board (ERB) has increased the pump price of diesel by K6.53, from K23.25 per litre to K29.78 per litre.
The price of petrol has risen from K26.61 per litre to K27.15 per litre for this month.
The price of kerosene has been increased from K21.06 per litre to K32.26, while Jet A-1 will now cost K34.74 per litre, up from K22.39 per litre.
ERB board chairperson James Banda said in a statement that during the review period, international oil prices recorded significant increases largely due to the heightened geopolitical crisis in the Middle East….https://enews.daily-mail.co.zm/welcome/home
