In a bold move to cushion citizens and businesses from the impact of rising global fuel prices, the Government of Zimbabwe has removed taxes levied on diesel, effective April 3, 2026. This decisive intervention is aimed at stabilizing fuel prices and mitigating the effects of global market volatility triggered by disturbances in the Middle East.
The Minister of Finance, Economic Development and Investment Promotion, Prof. Mthuli Ncube, announced the tax removal, citing the government’s concern for the nation’s wellbeing and its commitment to supporting economic growth and recovery. The taxes removed include excise duty, ZINARA road levy, carbon tax, and strategic reserve levy, which will keep the price of diesel at US$2.05, averting a 29% increase to US$2.65.
This move is expected to bring relief to businesses, which have been grappling with the high cost of production, and consumers, who have been struggling with the rising cost of living. The removal of the taxes is also anticipated to stabilize prices of goods and services, anchor inflation, and support ongoing economic growth and recovery.
President ED Mnangagwa’s government has demonstrated its responsiveness and people-centered approach to governance, listening to the concerns of citizens and taking decisive action to address them. This latest intervention underscores the government’s commitment to achieving its Vision 2030 goal of an empowered and prosperous middle-income society.
The business community has welcomed the move, noting that it will help alleviate the pressure on production costs and support economic activity. As the nation navigates the challenges of global market volatility, the government’s proactive measures are expected to provide a much-needed boost to the economy and improve the lives of Zimbabweans.
