Minister of Finance and National Planning Situmbeko Musokotwane says Zambia has lost approximately US$200 million in revenue due to tax relief measures implemented on petroleum products.
Dr Musokotwane explained that the loss stems from government’s decision to suspend excise duty and zero-rate Value Added Tax (VAT) on fuel, a move aimed at cushioning citizens and businesses from rising costs.
The minister made the remarks during the IMF and World Bank Spring Meetings held in Washington, D.C., where he shared Zambia’s experience in managing the economic impact of global shocks.
Speaking at the IMF Africa Fiscal Forum, Dr Musokotwane called for African countries to adopt more strategic fiscal policies that go beyond responding to crises and instead focus on long-term economic transformation.
He warned that a potential energy crisis linked to tensions in the Gulf region poses an immediate threat to African economies over the next 12 months.
According to the minister, such a crisis could drive inflation higher, increase production costs, and put additional pressure on already strained national budgets.
