Chinamasa increases duty on fuel

Government has increased duty on fuel as means of raising revenue against the backdrop of a thinning tax base.
 
Finance Minister Patrick Chinamasa yesterday gazetted the increase with the duty on leaded petrol at $0.45/litre from $0.35/l. Unleaded petrol  will be charged at $0.45/l from $0.35/l and diesel at $0.40/l from $0.30/l.
 
The increase also comes as the majority of fuel dealers failing to comply with the directive to reduce fuel prices in line with global trends. 

Analysts say the latest move by Government will result in the country failing to enjoy the benefits of falling oil prices as the increase in duty will be passed on to the consumer.