Fuel Tax Risks Fiscal Gains
ZICA raised concern over emerging fiscal risks despite encouraging macroeconomic improvements recorded in early 2026. By Francis Maingaila ♥️ Lusaka, Zambia24 --- (5-5-2026) - The Zambia Institute of Chartered Accountants (ZICA) has cautioned that the government’s decision to suspend fuel import taxes may undermine recent fiscal gains, as Zambia continues to navigate external shocks linked to global oil price volatility arising from the US–Iran conflict. Speaking at a quarterly economic briefing, ZICA President Yande Siame Mwenye said Cabinet’s 31st March 2026 decision to zero-rate VAT and suspend excise duty on fuel imports, though intended to stabilise prices, has effectively reintroduced subsidy-like pressures on the national budget. “The distinction between a tax suspension and a subsidy is minimal,” Mwenye said. “Both effectively redirect government revenue towards stabilising fuel prices.” She warned that the resulting fiscal gap could threaten key budgetary allocations, inc...