ECONOMIST BACKS FUEL TAX RELIEF TO PROTECT CONSUMERS FROM RISING COSTS
By Josphat Mbewe
Economist Lubinda Haabazoka has commended government’s decision to zero-rate value added tax -VAT- and suspend excise duty on petrol and diesel, describing the move as a timely intervention to shield consumers from rising fuel costs.
Cabinet has approved the zero-rating of value added tax and suspension of excise duty on petrol and diesel imports for three months effective, 1st April 2026, in a bid to cushion the impact of rising global crude oil prices on the economy.
In an interview with Phoenix News, Dr. Haabazoka says the measure effectively acts as a subsidy that will ease the burden on motorists, businesses and households.
Dr. Haabazoka notes that fuel prices have significantly increased on the international market due to the ongoing tensions in the Middle East, a development that would ordinarily have led to a sharp rise in local pump prices.
He has however commended government for implementing only a modest adjustment instead of passing on the full cost to consumers.
Dr. Habazoka has warned that transferring the full impact of global fuel price increases to the local market would have driven up inflation, making it more difficult for citizens to sustain their livelihoods.
PHOENIX NEWS