Zambia Proposes Removing Customs Duty on Battery-Electric Vehicles & Charging Systems – CleanTechnica

Good News from Zambia: Customs Duty on Electric Vehicles to be Removed

Here is some good news from Zambia. Presenting the 2024 National Budget, Hon. Dr. Situmbeko Musokotwane, Zambia’s Minister of Finance and National Planning, announced measures to promote clean energy usage, support the green economy, and mitigate climate change. These measures include:

1. 1. a) Removing customs duty on electric motorcycles, electric vehicles, electric buses, electric trucks, and charging systems; and
   2. b) Reducing excise duty to 25 percent from 30 percent on hybrid vehicles designed for the transportation of persons.

Once approved, these measures will be implemented on 1 January 2024. The removal of customs duty for full electric vehicles and the reduction of customs duty for hybrids is a very welcome development. This will help reduce the costs of electric vehicles in Zambia, making them more competitive with internal combustion engine (ICE) vehicles. The move by Zambia will help catalyze the adoption of electric vehicles, aligning with the Sustainable Development Goals (SDGs).

ZEMIA’s Role in Promoting Electric Mobility in Zambia

The Zambian Electric Mobility and Innovation Alliance (ZEMIA), a non-profit organization dedicated to supporting the adoption, development, and growth of the electric mobility ecosystem in Zambia, played a key role in lobbying the government to implement these new incentives. ZEMIA commends the decision to eliminate customs duty on electric vehicles and charging systems, stating that it will make EVs more financially accessible, foster sustainable transportation, and contribute to reducing greenhouse gas emissions and improving air quality.

ZEMIA also highlights the importance of a comprehensive set of incentives to fully accelerate EV adoption in Zambia. They propose additional measures, including:

1. 1. Zero VAT and Customs Duty: Completely zero-rating or waiving customs duty and VAT on EVs CKDs and associated equipment and components.
2. 2. Special Electricity Tariffs: Encouraging the use of electricity for EV charging through special tariffs and connection fees.
3. 1. Corporate Tax Incentives: Providing tax breaks for companies involved in the EV sector.
   2. Waiving Road Tax for EVs for five years: Temporarily exempting EV owners from road tax.
   3. Waiving Road Tolls for EVs for a five-year period: Incentivizing EV adoption and reducing traffic congestion.
   4. Infrastructure Development: Establishing fast charging stations along main roads and requiring new fuel service stations to include EV chargers.
   5. Government Fleet Electrification: Committing to ensuring that at least 50% of all government vehicle purchases are electric vehicles.
   6. Distinctive Number Plates: Introducing green-marked number plates for EVs to raise awareness and recognition.

Zambia’s commitment to promoting electric mobility aligns with the SDGs and can contribute to reducing the import bill for petrol and diesel, improving air quality, and conserving foreign currency.

Zambia’s Favorable Conditions for Electric Vehicles

Zambia has favorable conditions for electric vehicles. The country’s installed national generation capacity is higher than its peak national demand, and about 90% of its grid is powered by clean hydroelectricity. Electricity tariffs are also friendly, making the value proposition of electric cars attractive compared to traditional vehicles. The proposed incentives for EVs in Zambia will further enhance the adoption of sustainable transportation.

Conclusion

Zambia’s proposal to remove customs duty on electric vehicles and reduce customs duty on hybrids is a significant step towards achieving the SDGs and promoting sustainable mobility. The government’s commitment to supporting the EV sector and engaging with global leaders in the industry demonstrates its dedication to the green transition. With the implementation of additional incentives, Zambia can accelerate the adoption of electric vehicles and contribute to a cleaner and more sustainable future.

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 11: Sustainable Cities and Communities
• SDG 13: Climate Action

The issues highlighted in the article are connected to these SDGs because they involve promoting clean energy, supporting the green economy, mitigating climate change, and fostering sustainable transportation and mobility.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
• SDG 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
• SDG 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
• SDG 13.2: Integrate climate change measures into national policies, strategies, and planning.

These targets can be identified based on the article’s content as they align with the proposed measures to promote clean energy, reduce emissions, improve air quality, and enhance sustainable transportation.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Percentage share of renewable energy in the national energy mix
• Number of upgraded and retrofitted infrastructure and industries
• Air quality index and waste management indicators in cities
• Inclusion of climate change measures in national policies and strategies

These indicators can be used to measure progress towards the identified targets as they reflect the specific areas of focus mentioned in the article, such as renewable energy share, infrastructure sustainability, air quality, and climate change integration.

Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: cleantechnica.com

Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.