Zambia forgoes $200 million in revenue from fuel tax cuts
Zambia will forgo $200 million in revenue by suspending fuel taxes to cushion the economy. These measures aim to mitigate rising global energy prices in 2026.
The government of Zambia is projected to forgo approximately $200 million in revenue following the suspension of several fuel-related taxes. This fiscal decision, announced by Finance Minister Situmbeko Musokotwane, aims to shield the domestic economy from the volatility caused by geopolitical tensions involving Iran.
The REPUBLIC OF ZAMBIA recently approved the zero-rating of Value Added Tax and the suspension of excise duties on petrol and diesel imports. These measures, which took effect on April 1, are scheduled to remain in place for three months to mitigate the surge in global energy prices.
