JUST IN: Gvt slashes USD duty on fuel

Government has slashed customs and exercise duty on fuel imported using free funds by 50 percent for diesel and 44 percent for both leaded and unleaded petrol in a move that is aimed at reducing the cost of the liquid.

The announcement was done through Statutory Instrument 64 of 2020 also referred to as Customs and Exercise (Tariff Amendment) Notice 2020 number 14.

Duty for petrol is now US$0, 25 per litre down from US$0, 45 per litre while diesel will be levied US$0, 20 per litre down from US$0, 40.

The reduction in duty will immediately result in price reduction for fuel importers who are buying through the free funds facility.

The notice also notes that, “companies with free funds shall be allowed to import the goods designated. . . with the listed commodity (fuel) being imported entirely for use in their production process, and pay for the duty in foreign currency.

“This facility shall also be open to designated fuel stations authorised to sell the listed commodity codes (fuel) in foreign currency,” reads the SI.