Energy expert projects $1 billion loss in uncollected revenue due to continued extension of the fuel subsidies

Energy expert Johnstone Chikwanda has projected that government will lose about 1 billion United States Dollars in uncollected revenue by the end of 2022 as a result of the continued extension of the fuel subsidies.

Mr. Chikwanda states that in as much as government’s decision to extend fuel subsidies for another three months as announced by Energy minister Peter Kapala is prudent and welcome, this will affect the implementation of other national programs in national budget.

Speaking to Q-news, Mr. Chikwanda notes that in 2021 a billion dollars was not collected from the oil industry due to the same waived taxes.

Mr. Chikwanda is hopeful that by the end of the three months, government will instead consider re-integrating the taxes in a phased approach.

He says government should thoroughly explain the impact the extension of the subsidies has on the people and the implementation of the national budget.