Zimbabwe has reduced excise duty on fuel imports, in a move aimed at reducing overall production costs in the country.
Petrol prices in Zimbabwe which are ranging between $1.40 and $1.56 per litre while diesel costs between $1.30 and $1.33 per litre, are expected to drop following the move which comes into effect today.
Excise duty on petrol has been reduced by 6.5 cents per litre from 45 cents to 38.5 cents, while importers of diesel and paraffin will enjoy a reduction of 7 cents from 40 cents per litre to 33 cents per litre.
“The minister of finance and economic development Patrick Chinamasa has in terms of section 225 of the Customs and Excise Act reduced Excise Duty on fuel with effect from 23 January 2018,” secretary for Finance and Economic Planning Willard Manungo said in a statement.
“The reduction in Excise Duty will have the impact of reducing fuel prices. This will also have an effect on reducing the impact of fuel costs in the economy’s overall production cost structures across all sectors.”
Zimbabwe solely relies on fuel imports and prior to the reduction Diesel and petrol were charged taxes and levies amounting to 0.50 cents and 0.63 cents respectively, making them the most expensive in the region.- The Source