In a move aimed at reducing energy costs for households and businesses, Zimbabwe has announced the removal of Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG). This policy shift has led to a 10% reduction in the price of LPG, making it more affordable for the population.
The decision, confirmed by the Ministry of Finance and Economic Development, is part of ongoing efforts to ease the cost of living and promote the use of cleaner energy sources. LPG, which is widely used for cooking and heating in Zimbabwe, has seen prices rise significantly in recent years, impacting low and middle-income families.
Experts have praised the government’s initiative, saying it will help lower the financial burden on consumers. The removal of VAT aligns with the country’s commitment to promoting sustainable energy alternatives as it continues to face challenges related to power shortages and the high cost of electricity.
With the new pricing structure in place, LPG will now be more accessible to a larger segment of the population. The reduction is expected to encourage wider adoption of LPG as a more efficient and environmentally friendly energy source, further contributing to Zimbabwe’s efforts to diversify its energy mix.
This move follows a series of other government measures aimed at curbing inflation and stabilizing essential commodities. As the effects of the VAT removal begin to be felt, it is hoped that the broader impact will extend to further cost reductions in other areas of the economy, providing much-needed relief to Zimbabweans.
