ZIMRA Implements New Duty Regulations For Fuel In Transit
The Zimbabwe Revenue Authority (ZIMRA) has started enforcing new regulations requiring all fuel in transit, imported through ports of entry by road, to pay duty and levies at the border as part of the broader strategy to minimise transit fraud.
Under the new policy, the duty will be refunded at the port of exit upon compliance with all the transit procedures, including submission of proof that the fuel has been exported.
The regulations affect the transportation of all fuel, including petrol, diesel, paraffin and Jet A1 being ferried by road through Zimbabwe.
In a public notice, ZIMRA said the new regulations came into effect on Saturday last week and are being enforced. ZIMRA said in a statement:
Accordingly, the ZIMRA wishes to advise its valued clients and the public of the 2024 Midterm budget pronouncements by the Minister of Finance, Economic Development and Investment Promotion relating to the payment of duty for fuel in transit to mitigate against transit fraud.
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With effect from August 10 2024 all fuel, petrol, diesel, paraffin and jet A1, in transit imported through ports of entry by road, is now required to pay duty and levies on entry.
Consignee’s and/or representatives should approach ZIMRA at the port of entry to initiate the fuel clearance and payment process.
For the refund process, once the fuel has been exported, they should approach ZIMRA at the port of exit to initiate the requisite refund.
In 2017, the government started using the Electronic Cargo Tracking System (ECTS) to track cargo, especially fuel.
This was due to more cases of transit fraud, where goods brought in under the Removal in Transit (RIT) are sold locally without paying the necessary taxes.
In his mid-term budget statement, the Minister of Finance, Economic Development and lnvestment Promotion, Mthuli Ncube, said the electronic cargo tracking system used by ZIMRA had not stopped transit fraud.
Transit fraud is when goods that are supposed to be transported to one place are illegally sold or diverted to another location without paying the required taxes or duties.
This usually happens with imported products that are meant to pass through a country to reach their final destination.
Instead, they are often sold on the local market, causing losses to the government in terms of tax revenue.
More: Pindula News
