By Staff Reporter
The Zambia Institute of Chartered Accountants (ZICA) has expressed concern over the government’s fuel tax policy, noting that while the zero-rating of tax on petrol has helped shield consumers from sharp price increases, similar relief has not been extended to diesel and kerosene users.
ZICA President Yande Mwenya highlighted that kerosene remains a critical energy source for millions of Zambians—estimated at around 7.5 million people—particularly in rural and peri-urban communities. She noted that many households rely on kerosene for cooking, lighting, and small-scale production, making the lack of tax relief especially burdensome for vulnerable populations.
Speaking during a media briefing, Mrs. Mwenya warned that the uneven application of fuel tax measures risks deepening economic inequality. While petrol users benefit from reduced costs, those dependent on diesel and kerosene—often among the most economically disadvantaged—continue to face rising expenses.
She further cautioned that maintaining such selective relief could also have broader fiscal implications. With the 2026 National Budget already committing substantial resources to key sectors, expanding or sustaining subsidies without careful planning may strain the country’s financial position.
On the broader economic outlook, Mrs. Mwenya noted that inflation is expected to gradually decline toward the government’s target of six percent by 2027. However, she warned that external pressures could disrupt this trajectory. In particular, rising global fuel prices—partly driven by geopolitical tensions such as the ongoing U.S.–Iran tensions—pose a risk to Zambia’s economic stability.
ZICA has urged policymakers to adopt a more balanced and inclusive approach to fuel tax relief, ensuring that support measures adequately protect the most vulnerable while safeguarding the country’s fiscal sustainability.
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