This lowered excise tax rate will help bring down the retail price of diesel at petrol stations, reports NNT.
The government hopes this measure will bring down the pricing of other commodities and consumer products, and alleviate the financial constraints caused by the fuel price crisis.
At the previous rate, the Excise Department generated around B12 billion monthly from diesel excise tax, or around B144bn each year. The rate is calculated based on the average diesel consumption at some 2bn litres each month.
The Ministry of Finance now expects this temporary tax reduction to cut its revenue down by B5.7bn a month for the next three months.
However, the decision is expected to benefit the manufacturing industry, the tourism industry, and the agricultural sector, particularly the farmers.