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Monday, April 12, 2021

Oil Marketing Companies begins importation of petroleum products after Zero rating VAT and Excise duty

Economy Oil Marketing Companies begins importation of petroleum products after Zero...

Oil Marketing Companies (OMCs) have resumed the importation of petroleum products after effecting of the recently zero-rated value-added tax on petroleum products by government, through the issuance of Statutory Instrument number 125 of 2020 with the effective date of 1st January 2021.

The development is also to effect the removal of excise duty on diesel and effecting the excise duty for petrol which was reduced from K2.07 per litre to K0.64 per litre.

In a statement issued to the media in Lusaka this afternoon, the Ministry of Energy has stated that the zero-rating of value-added tax and excise duty on petroleum products was in response to Oil Marketing Companies (OMCs) who had informed the government that the importation of fuel was not profitable and commercially not viable.

“The nation may wish to note that a quick check at our various border points has confirmed that the trucks carrying the petroleum products are now crossing the border into the country. The government of Zambia, using a one government approach zero-rated the value-added tax and removed excise duty on diesel and reduced on petrol as a measure to prevent a price increment on the products,” reads the statement in part.

The Ministry of Energy further indicated that savings due to the removal of the taxes was then redistributed to OMCs and dealers in line with the price build-up for petroleum products.

The statement further reads, “The public, therefore, should not expect any pump price adjustment as the prices have been maintained as they are. The Ministry of Energy will continue to work closely with the OMCs to ensure the stable supply of fuel into the country”.

And the Ministry of Energy has announced that Indeni petroleum refinery will soon resume its operations as government is finalising the financing arrangements with the supplier.

4 COMMENTS

  1. All the sectors of our economy are crumbling, be it health, mining now energy. Wake me up when this horror show is over

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  2. When elections are months away that’s when they start all this hoodwinking of removing VAT…few months ago when crude was at an all time low they stated that they can not reduce fuel because they still have old stock.

  3. What do you expect when everyone in PF is into Oil?
    Indeni Refinery has been starved of feedstock to create a favourable environment for PF OMCs!

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