Zimbabwe Introduces US$0.005 Levy On Petrol And Diesel Fuel
The Minister of Energy and Power Development, Edgar Moyo, has authorised the Zimbabwe Energy Regulatory Authority (ZERA) to impose a new US$0.005 petroleum levy per litre on both petrol and diesel fuel.
This levy is outlined in Statutory Instrument 168 of 2024, which was published in a supplement to the Zimbabwean Government Gazette on Friday, October 11th.
Taxes already account for a significant 35% of the overall fuel price in Zimbabwe. In fact, fuel taxes made up approximately 70% of the country’s excise duty revenue last year.
According to the statutory instrument, the collected funds from this new levy will be utilised by ZERA to strengthen compliance with regulations and standards within the petroleum sub-sector, as well as to procure necessary tools and equipment.
The full text of Statutory Instrument 168 of 2024 is provided below:
Statutory Instrument 168 of 2024.
Petroleum (Levy) Regulations, 2024
IT is hereby notified that the Minister of Energy and Power Development after consultation with the Authority has, in terms of section 57 of the Petroleum Act [Chapter 13:22], made the following regulations:
1. These regulations may be cited as the Petroleum (Levy) Regulations, 2024.
2. The Authority with the approval of the Minister has imposed a levy of United States dollars (USD) 0.005 per litre to be part of the pricing of diesel and petrol, collectable upon importation of the products.
3. The National Oil Infrastructure Company of Zimbabwe (NOIC) and the Zimbabwe Revenue Authority of Zimbabwe (ZIMRA) (and its designated agents), shall be authorised to collect the petroleum levy, subject to the terms and conditions agreed upon with Zimbabwe Energy Regulatory Authority (ZERA).
4. The collected funds shall be used by Zimbabwe Energy Regulatory Authority (ZERA) for-
(a) strengthening the compliance of the petroleum sub-sector to regulations and standards;
(b) training and development;
(c) procuring tools;
(d) researching and development; and
(e) such other related activities as may be necessary.
5. The excess funds shall be used for enhancing access to energy in rural areas, procurement and construction of properties and the funding of activities meant to promote renewable energy uptake.
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