Government Zero-Rates Fuel VAT Amid Supply Emergency

Government has approved the zero-rating of Value Added Tax on fuel imports and suspended excise duty on petrol and diesel for three months, effective April 1, 2026, as part of urgent measures to stabilise the economy.

The decision was announced by Chief Government Spokesperson and Information Minister Cornelius Mweetwa following a special Cabinet meeting chaired by President Hakainde Hichilema at State House.

Cabinet declared the current fuel supply situation in the country an emergency, citing disruptions to global oil supply chains driven by ongoing tensions in the Middle East, which have pushed up international fuel prices and placed pressure on domestic pump prices.

Mr Mweetwa said the measures are designed to cushion citizens, businesses, and key productive sectors from rising fuel costs.

"Without these interventions, pump prices for April 2026 would have risen significantly, worsening the cost of living," he said.

Government described the tax relief as short-term interventions, with authorities committing to monitor the situation closely and implement further measures if necessary to safeguard the economy and citizens' welfare.