Zambia Suspends Fuel Duties And Zero-Rates VAT For Three Months

Zambia has removed Value Added Tax (VAT) and suspended excise duty on petrol and diesel imports for a three-month period beginning April 1, 2026.

The government has also declared the current unstable fuel supply across the country as an emergency.

This decision was made during a Cabinet meeting chaired by President Hakainde Hichilema.

Chief Government Spokesperson Cornelius Mweetwa announced the decision in a statement following the meeting.

Mr. Mweetwa, who also serves as Minister of Information and Media, said the meeting focused on measures intended to support Zambia’s socio-economic development.

He explained that the fuel-related decisions are short-term interventions meant to cushion the economy from the effects of rising global crude oil prices.

Cabinet, he said, expressed serious concern over the ongoing conflict in the Middle East, which has disrupted global oil supply chains, driven up international fuel prices, and increased pressure on domestic pump prices.

“Since Zambia, like many other countries, is experiencing the effects of these supply disruptions, it is essential for the government to update citizens on the situation and on the steps being taken to protect households, businesses, and key productive sectors from the impact of escalating fuel costs.

“In this regard, Cabinet has approved the zero-rating of Value Added Tax (VAT) and the suspension of excise duty on petrol and diesel for three months. These measures take effect at midnight,” Mr. Mweetwa said.

He added that without these interventions, pump prices for April 2026 would have risen significantly, worsening the cost of living.

“The public is urged to remain calm as the government continues to monitor developments closely. The government remains prepared to take additional action if required to safeguard the economy and the well-being of citizens,” Mr. Mweetwa said.