Zambia has announced the removal of Value Added Tax (VAT) and the suspension of excise duty on petrol and diesel imports for a three-month period starting April 1, 2026, as part of measures to ease pressure on fuel prices.
The government has also declared the current instability in fuel supply as an emergency, underscoring the urgency of the situation.
The decision was taken during a Cabinet meeting chaired by President Hakainde Hichilema.
Chief Government Spokesperson, Hon. Cornelius Mweetwa, who also serves as Minister of Information and Media, announced the measures in a statement following the meeting.
According to Hon. Mweetwa, the discussions focused on interventions aimed at supporting the country’s socio-economic stability.
He explained that the fuel-related measures are temporary steps designed to cushion the economy from the impact of rising global oil prices.
Cabinet, he said, expressed concern over the ongoing conflict in the Middle East, which has disrupted global supply chains, pushed up crude oil prices, and increased pressure on domestic fuel prices.
Hon. Mweetwa noted that, like many countries, Zambia is already feeling the effects of these disruptions, making it necessary for government to act to protect households, businesses, and key sectors of the economy.
He stated that without the tax relief measures, fuel prices for April 2026 would have risen sharply, worsening the cost of living.
He further assured the public that government will continue to monitor developments closely and remains ready to implement additional measures if needed to safeguard the economy and citizens’ welfare.