TAX UPDATE: Fuel Tax Relief Measures Introduced in Zambia

The Government of Zambia has announced temporary tax relief measures on fuel in response to rising global oil prices and supply disruptions.
Effective: 1 April 2026 – 30 June 2026
Key Measures:
  • VAT zero-rated on petrol and diesel
  • Excise duty suspended on fuel imports
These measures are aimed at reducing pump prices, easing the cost of living, and supporting businesses across key sectors.
What this means for businesses:
  • Lower fuel-related operating costs
  • Improved cash flow (input VAT remains recoverable)
  • Immediate need to update VAT treatment and system to categorize fuel correctly so as not to charge VAT on sale at 16%
Important: These are temporary measures (3 months) businesses should plan for a transition once they expire.