Govt slashes exercise duty on fuel

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    Harare – Government has reduced excise duty on diesel and petrol in a move meant to cushion the public from an increase in the price of fuel which saw the price of petrol increasing from $3.36 to $4.97 while diesel increased to $4.89 from $3.22.

    The move is however likely to counter the drive by government to earn more money from taxes so as to ease the fiscus deficit.

    Fuel tax together with money transfer tax introduced in 2018, has resulted in a temporal cushioning of the fiscus, which has gone to report surpluses since December 2018.

    In an announcement published through the Ministry of Information, Permanent Secretary in the Ministry of Finance, George Guvamatanga said duty on petrol had been revised down from $2.30 to $1.15, with diesel duty now pegged at 0.90 cents from $2.05 per litre.

    IMTT and exercise duty on fuel contributed significantly into government’s revenue collections in the first three months of the year which reached $2.1 billion, exceeding target by 42 percent.

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