THE government is considering further reduction of import taxes on gas-powered vehicles to promote the use of natural gas.

Judith Kapinga, the Energy deputy minister, made this affirmation yesterday while responding to a basic question from Grace Tendega (Special Seats-Opposition), who demanded to know government plans to reduce some taxes to encourage more people to import gas-powered vehicles.

The deputy minister stated that in the 2023/24 budget estimates, the government provided a 25 percent customs duty exemption on natural gas-powered vehicle engines when imported into the country.

She said the government is also actively promoting private sector investments in the manufacturing of parts for gas-powered systems for vehicles and machinery within the country.

Dr Mwigulu Nchemba, the Finance minister, affirmed that the government had tax reductions for gas-powered vehicles and parts in the 2024/25 fiscal plan, and was considering further adjustments for fiscal 2025/26.

Additional measures are in line with facilitating the cleaner energy drive by President Samia Suluhu Hassan, he said, with the deputy minister addressing concerns about the lack of facilities for converting diesel vehicles to gas.

While most facilities currently convert petrol vehicles to natural gas use, plans are underway to establish facilities for diesel conversions as well in collaboration with the private sector, she added.