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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:
<blockquote>
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.
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.
</blockquote>
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: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

ZIMRA has new rules for fuel in transit. Now, all fuel coming into Zimbabwe by road must pay duty at the border. If the fuel is exported later, the duty will be refunded. This affects petrol, diesel, paraffin, and Jet A1. This change aims to reduce transit fraud, where goods are brought in but not taken to the final destination, avoiding taxes. The new rules started on August 10, 2024. The government uses the Electronic Cargo Tracking System to monitor goods and prevent fraud.

ZIMRA Implements New Duty Regulations For Fuel In Transit

Finance, Economic Development and Investment Promotion Minister Mthuli Ncube has proposed a temporary import duty on fuel in transit to other countries, in a move aimed at curbing rampant cases of transit fraud, reported <a href="https://www.zimlive.com/ncube-proposes-temporary-duty-on-fuel-in-transit-to-curb-rampant-fraud/">ZimLive</a>.
In his Mid-Term Budget Review Statement presented to parliament on Thursday, Minister Ncube acknowledged that the electronic cargo tracking system (ECTS) being used by the Zimbabwe Revenue Authority (ZIMRA) has failed to effectively stop transit fraud.
The government introduced the ECTS in 2017, which uses electronic seals and transmitters to monitor cargo, particularly fuel imports. This was a response to increasing incidents of transit fraud, where goods imported under the Removal in Transit (RIT) scheme were being offloaded on the local market without paying the required duty.
However, despite the implementation of the ECTS, Minister Ncube said that rampant cases of transit fraud continue unabated. He said:
<blockquote>
I, therefore, propose to secure duty and levies on fuel imported under Removal in Transit Facility, by imposing payment of duty at the Port of Entry.
Such duty and levies shall be recovered on acquittal at the Port of Exit.
This measure, which takes effect from 1st August 2024, will not apply to fuel uplifted from National Oil Infrastructure Company, Msasa Depot.
The Zimbabwe Revenue Authority is directed to manage the duty refund process efficiently through dedicated bank accounts.
</blockquote>
Ncube also proposed measures to deal with under-declared fuel imports. He said:
<blockquote>
Cognisant of the opportunity by operators to under-declare fuel imports, as well as abuse of the Removal in Transit Facility, I propose to introduce mandatory Fiscalisation of domestic fuel sales, with effect from 1st November 2024.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Finance Minister Mthuli Ncube wants to stop fraud with fuel being sent to other countries. He says the current tracking system is not working well. A new plan is to charge duty on fuel when it enters Zimbabwe, and get a refund when it leaves. This will start in 2024 and won't apply to local fuel. There will also be new rules to make sure fuel is declared correctly. The goal is to stop people from cheating the system and selling fuel without paying the right taxes.

Mthuli Proposes Temporary Duty On Fuel In Transit

The Minister of Finance, Economic Development and Investment Promotion, Mthuli Ncube, on Thursday suspended duty on power equipment, critical spares and transformer components imported by subsidiaries under ZESA Holdings.
ZESA Holdings’ subsidiaries are ZESA Enterprises (ZENT), Zimbabwe Electricity Transmission and Distribution Company (ZETDC) and Zimbabwe Power Company (ZPC).
The suspension was announced in Statutory Instrument 93 of 2024 cited as Customs and Excise (Suspension) (Amendment) Regulations, 2024 (No. 272) published in an Extraordinary Government Gazette on Thursday. It reads in part:
<blockquote>
Subject to this section and to such conditions as the (ZIMRA) Commissioner General may fix, a suspension of duty shall be granted for a period of two years, on power equipment, critical spares following commodity codes, imported by ZENT, ZETDC, the successor company of the ZETDC and the ZPC.
</blockquote>
The elimination of duty will enable ZESA’s subsidiaries to acquire necessary equipment and components at a lower cost.
It will also allow for more efficient maintenance and repair of power infrastructure. Timely repairs and replacements can minimise downtime and improve service reliability.
ZESA has lost millions due to vandalism and theft of its equipment, particularly transformers and the suspension of duty is expected to reduce the financial burden of replacing stolen or damaged equipment.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Government Suspends Import Duty On ZESA Equipment

The government has granted permission to companies and individuals to import maize, rice, and cooking oil duty-free with effect from July 2024 to avert looming food shortages emanating from the El Nino-induced drought.
Speaking during a post-Cabinet media briefing on Tuesday, 12 March, the Minister of Information, Publicity and Broadcasting Services, Jenfan Muswere said that among other issues discussed, Cabinet discussed the importance of considering more hectarage for growing rice because of increased rice consumption by the citizens.
He said Cabinet also emphasized the need to support and promote local wheat production to swap wheat for maize to meet maize demand for the nation. Added Muswere:
<blockquote>
The food security strategy is based on the comparative and competitive advantages of wheat this winter.
The consumption of 7.5kg per person per month be used immediately for social welfare and be adjusted after October to 8.5kg per person per month.
The purchase of local grain at an import parity price of US$390 per tonne to mop up excess local grain.
Government has okayed a duty waiver on the importation of rice and potato seed, and the importation of genetically modified maize for stock feed, under strictly supervised milling and distribution.
</blockquote>
The Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Anxious Masuka added that rice and potatoes will be regarded as key staples to ensure national food security.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Okays Duty-free Food Imports, Genetically Modified Maize For Stockfeed

The Government has reimposed duty on cooking oil, maize meal, milk, sugar, rice, flour, salt, bath soap, washing soap, washing powder, toothpaste and petroleum jelly imports.
In May 2023, the Government allowed the importation of the aforementioned products duty-free in response to shortages and rapid price changes as suppliers resorted to forward pricing.
The repeal of the duty-free status was gazetted on Wednesday, 31 January, by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube in Customs and Excise (Suspension) (Amendment) Regulations, 2024 (No. 272) published in Statutory Instrument 10A of 2024. Reads the SI:
<blockquote>
IT is hereby notified that the Minister of Finance, Economic Development and Investment Promotion, in terms of section 235 as read with section 120 of the Customs and Excise Act [Chapter 23:02], has made the following regulations:-
1. These regulations may be cited as the Customs and Excise (Suspension) (Amendment) Regulations, 2024 (No. 272).
2. The Customs and Excise (Suspension) Regulations, 2003, published in Statutory Instrument 257 of 2003 (hereinafter called “the principal regulations”), are amended by the repeal of section 91 (Suspension of duty on Cooking Oil, Maize meal, Milk, Sugar, Rice, Flour, Salt, Bath Soap, Laundry Soap, Washing Soap, Washing Powder, Toothpaste and Petroleum Jelly) with effect from 1st February 2024.
</blockquote>
The repeal of the duty-free status is somewhat not surprising as the 2024 national budget proposed various taxes which have deepened citizens’ suffering.
Whilst Ncube backed down on some of his “outrageous” revenue-raising proposals, businesses and citizens now pay more taxes/fees than in 2023.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Reimposes Duty On Basic Grocery Items

The Government, through the Minister of Industry and Commerce, Sithembiso Nyoni, has removed duty on several products, among them candles, network cables, fertilizers, detergents and biscuits.
The Government on 26 February 2024 gazetted Statutory Instrument 6 of 2024 which scrapped the duty of certain products. The regulations read in part:
<blockquote>
IT is hereby notified that the Minister of Industry and Commerce, in terms of section 4(1) of the Control of Goods (Import and Export) (Commerce) Regulations, 1974, published in the Rhodesia Government Notice No. 766 of 1974, hereby makes the following notice:-
1. This notice may be cited as the Control of Goods (Open General Import Licence) (Amendment) Notice, 2024 (No. 14).
2. The Control of Goods (Import and Export) (Commerce) Regulations, 1974, published in the Rhodesia Government Notice No. 766 of 1974, are amended by the insertion of the following products to the Open General Import Licence (OGIL).
3. The mentioned products no longer require an import permit or licence.
</blockquote>
The mentioned products are: data and network cables, floor polish, batteries, tile adhesive, grout and tylon, biscuits, detergents and washing preparations (engine cleaners, window cleaners and other detergents), fertiliser and fertiliser products (Urea, Ammonium Nitrate, NPK, compounds and blends, CAN and LAN, Single Superphosphate.
While the scrapping of duty on fertiliser makes sense as the country is currently in the middle of the rainy season, and there is a shortage of the product on the market, removing duty on biscuits may harm local manufacturers who will have to contend with an influx of cheap products.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Scraps Duty On Candles, Biscuits, Fertiliser Products

Sugar producer, Hippo Valley Estates Limited says the local sugar industry has been negatively affected by the lifting of all restrictions on the importation of basic grocery items including sugar.
In a statement of financial results for the year ended 31 March 2023, Hippo Valley said the suspension of duty has resulted in sugar from stable economies being dumped onto the local market. The company said:
<blockquote>
With the recently introduced Statutory Instrument 80 of 2023 allowing duty-free importation of several commodities including sugar, the sugar industry faces huge pressure to compete against imports coming from competitors operating in stable and subsidized environments.
Additionally, the ongoing rolling power outages are set to compound recovery challenges across the economy.
The company continues to monitor and navigate these complexities and implement appropriate value preservation measures.
</blockquote>
In May last year, and again this year, the Government suspended import duty on 11 products, namely sugar, maize meal, rice, milk, flour, salt, cooking oil, petroleum jelly, toothpaste, bath soap, and washing soap.
Finance and Economic Development Minister, Mthuli Ncube, said the move was necessitated by unjustified price increases by suppliers.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Duty-free Sugar Imports Pile Pressure On Local Sugar Industry

The Zimbabwe National Chamber of Commerce (ZNCC) says the removal of import controls is promoting excessive hoarding of cheaper basic grocery items from abroad.
In its latest report, ZNCC said this is being done in anticipation that the controls might be returned later and traders intend to take advantage of importing duty-free and quota-free regimes. ZNCC said:
<blockquote>
This hoarding for future supply will result in a long-term supply of imported goods that will continue to affect the local industry for a longer period of time and will render useless some of the tools that were spelt out to promote industrialisation in the Zimbabwe Industrialisation Development Policy.
Even when the controls are returned later, they will have no effect as the hoarded supplies will continue to be distributed and pose serious competition to local producers.
For example, when the SI 98 of 2022 expired in November 2022, some warehouses were still filled with goods that could supply the informal and formal sectors for the next three to four months…
The move to import goods duty-free will reduce government revenue collections, at a time when the national budget has already been eroded by inflation.
Removing import controls on basic commodities might also reduce demand for local raw materials that feed into local industries.
As demand for cheaper imported finished products grows, the market for locally produced goods’ will contract, which will also reduce local production and demand for raw materials used in their production, especially in the agro-processing sector, which is a key value chain in Zimbabwe.
</blockquote>
In May this year, the Government removed duty on 11 selected imported basic grocery items and allowed shops and other Zimbabwean businesses to keep 100 percent of the foreign currency they get from sales.
The products that will be imported duty-free include maize meal, rice, milk, flour, sugar, salt, cooking oil, petroleum jelly, toothpaste, bath soap and washing powder.
The move came after shops hiked prices and some started to charge for certain products exclusively in foreign currency following a sudden fall in the value of the Zimbabwean dollar against other currencies.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Removal Of Import Controls Promoting Hoarding - ZNCC

The recent move by the Government to suspend import duty and import value-added tax (VAT) on selected groceries is something Zimbabweans have become familiar with as it happened exactly 12 months ago.
The suspension was lifted in late November 2022, which means it has taken the Government just six months to reverse its decision amid soaring prices and a runaway exchange rate.
On Friday, 12 May, the Government suspended import duty and import value-added tax (VAT) on 11 basic grocery items: maize meal, rice, milk, flour, sugar, salt, cooking oil, petroleum jelly, toothpaste, bath soap and washing powder.
The suspension of the import duty and import VAT shall be valid for six months from 12 May 2023.
The development evokes a sense of déjà vu as similar measures to address rampant price increases were put in place in May 2022.
In May last year, Ministry of Finance and Development permanent secretary George Guvamatanga directed Zimbabwe Revenue Authority (ZIMRA) then acting Commissioner-General Regina Chinamasa to suspend duty on selected products for a period of six months with effect from 17 May 2022. Wrote Guvamatanga:
<blockquote>
Reference is made to the press statement by the Minister of Finance and Economic Development where a pronouncement was made regarding the introduction of measures aimed at ensuring access to affordable basic commodities, in view of the recent substantial increases in prices of locally manufactured products.
In view of the above, Zimbabwe Revenue Authority is hereby authorised to suspend duty on the following products for a period of six months with effect from May 17, 2022.
</blockquote>
Rice, flour, cooking oil, margarine, salt, sugar, maize meal, milk powder, infant milk formula, tea (whether or not flavoured), petroleum jelly, toothpaste, bath soap, laundry bar were to be imported duty-free.
Finance and Economic Development Minister Mthuli Ncube scrapped the suspension of import duty when he presented the 2023 national budget on 24 November 2022.
In his budget presentation at the New Parliament Building in Mt Hampden, Ncube said:
<blockquote>
Mr speaker sir, the government suspended customs duty on basic commodities in order to cushion consumers from unjustified price increases, this measure has contributed to stability in prices of basic commodities, hence the suspension which expired on November 16, 2022 will not be extended.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Six Months Ago Govt Re-imposed Duty On Basic Groceries

Confederation of Zimbabwe (CZI) president Kurai Matsheza has said the recent suspension of import duty and import value-added tax (VAT) on 11 basic groceries by the Government will have a negative impact on the economy.
On Thursday, Finance and Economic Development Minister Mthuli Ncube announced several measures to stabilise the exchange rate and prices.
Among other things, Ncube scrapped import duty and import value-added tax (VAT) on selected products.
On Friday, Finance and Economic Development permanent secretary George Guvamatanga directed Zimbabwe Revenue Authority (ZIMRA) commissioner-general Regina Chinamasa to suspend import duty and import VAT on maize meal, rice, milk, flour, salt, cooking oil, sugar, petroleum jelly, toothpaste, bath soap and washing powder.
Speaking to <a href="https://www.newsday.co.zw/local-news/article/200011563/industry-frets-over-suspension-of-import-duty">NewsDay</a> on Sunday, Matsheza said the move choke local manufacturers and was also tantamount to exporting jobs. He said:
<blockquote>
The lifting of duties on the 11 products has more negatives than positives on the economy.
This measure means as a country we’re outsourcing the production of those products, hence exporting jobs.
While the intention is to protect the general consumer from the price increase, the general consumer will not be importing, it’s small businesses and big to some extent who will be importing and then retailing in US dollars.
This deepens dollarisation as basic goods will only be available in USD [supposedly at ‘low’ prices].
</blockquote>
The announcement came after shops hiked prices of basic food items in response to the rapid weakening of the Zimbabwe dollar against other currencies.
The removal of import duty on products can result in lower prices for consumers and improved access to goods.
However, removing import duty may also have some negative effects such as loss of government revenue, adverse effects on domestic industries, and dependency on foreign producers.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Captains Of Industry Say Suspension Of Duty Will Export Jobs And Choke Small Businesses

Renowned economist Gift Mugano has commended Treasury for allowing businesses to keep 100% of their locally generated forex revenue.
Speaking to <a href="https://www.newsday.co.zw/thestandard/business/article/200011510/it-will-not-work-industry-tells-ncube">The Standard</a>, Mugano a professor of economics, however, said the removal of import duty on 11 selected products will expose the local industry while draining foreign currency from the country. He said:
<blockquote>
The move by the government to open the borders for basic commodities under the argument that they want to push improvement and availability of basic commodities; I don’t think it’s a good one.
It clearly exposes our local industry and it becomes a significant drainer of foreign currency because we are allowing unrestricted draining of foreign currency to import goods.
My view on this: I think the government is being emotional about the current price spike.
The tragedy is that the price hikes will continue because local manufacturers will be forced to charge Zimdollar and United States dollars in the shops as required by law, but those who are going to import commodities, particularly cross border will not charge in Zimbabwean dollars.
This will further deepen dollarisation and use of United States dollar because they need foreign currency to be able to go back and import again.
</blockquote>
According to The Standard, the Zimbabwean dollar fell to $2 700 against the United States dollar from about $1 200 a week ago.
But officially, during the same period, the Zimbabwe dollar fell to $1 222.27, against the greenback.
The depreciation of the local unit has led businesses to increase prices to preserve the value of goods and services, thereby making a recent 100% salary increment for civil servants meaningless.
In fact, some commentators say civil servants were better off before the salary increment in April than they are at present as far as their earnings in local currency are concerned.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

"Removal Of Import Duty On Groceries Will Expose Local Industry And Drain Forex"

Economic commentators have condemned the measures announced by Finance and Economic Development Minister Mthuli Ncube last week to stablise the exchange rate and prices of goods and services.
Some of the measures included the removal of duty on 11 selected basic grocery items, allowing businesses to keep 100% of their locally generated forex revenue, and a pledge to fine-tune the foreign exchange auction system so that it operates on a pure Dutch auction basis.
Speaking to <a href="https://www.newsday.co.zw/thestandard/business/article/200011510/it-will-not-work-industry-tells-ncube">Standardbusiness</a>, economic analyst Vince Musewe said Ncube’s measures are reactive and will not work. He said:
<blockquote>
An economy cannot be managed in a reactive mode from crisis to crisis, but sadly that is what is happening.
There is no debate that Zimbabweans prefer the US dollar and those with US dollars will continue to demand a premium.
Despite the country generating US$12 billion per annum, the appetite for the US$ dollar will never be satisfied and it is clear the informal sector does not react to economic policy measures but operates to maximise profits.
This has resulted in a supermarket economy where everyone is selling some imported trinkets to make a living and importing basic goods kills local industry.
The scenario has not changed where the rate goes up inflation goes up and the rate goes up creating a vicious cycle.
It is time to realise that the dollarisation of incomes is the only sensible thing to do to cushion citizens.
Salaries and wages must now be in US dollars and companies must freely charge in US dollars.
The economy has rejected the Zimbabwe dollar; nobody wants it.
</blockquote>
Confederation of Zimbabwe Industries (CZI) chief executive officer Sekai Kuvarika said:
<blockquote>
I think we need to give the stabilisation measures a chance before we destabilise the manufacturing sector by flooding the market with cheap imports.
You also have to remember that these imports are coming from environments that are not the same as we are.
</blockquote>
She said there was no shortage of basic commodities in the country.
Another economic analyst Stevenson Dhlamini said:
<blockquote>
It’s difficult to conclude whether they are effective or non-effective, but it’s showing that they are appreciating that we are in a crisis.
There is a clause where the minister says he will increase the interest rates to curb inflation in the short term.
My belief is that the interest rates and the parallel market have to continue to chase each other.
The more you increase interest rates the parallel market simply increases its premiums to compensate for the higher interest rates.
So the question can be: is the interest targeting the best or the most effective response at this stage or rather we should be addressing the sources of money supply growth?
</blockquote>
Meanwhile, Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said that the measures will support the issuance of gold coins and tokens by the central bank.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

It Will Not Work, Economists Tell Mthuli Ncube

The Government on Friday suspended import duty and import value-added tax (VAT) on 10 basic grocery items: maize meal, rice, milk, flour, salt, cooking oil, petroleum jelly, toothpaste, bath soap and washing powder.
The suspension of the import duty and import VAT shall be valid for six months from 12 May 2023.
The Permanent Secretary for Finance and Economic Development George Guvamatanga has since directed Zimbabwe Revenue Authority (ZIMRA) Commissioner General Regina Chinamasa, to “urgently draft the necessary legal instrument and implement the duty suspension with effect from 12 May 2023”. Wrote Guvamatanga:
<blockquote>
Furthermore, the Ministry of Industry and Commerce is expected to complement the measure through the inclusion of the above goods on the Open General Import Licence.
</blockquote>
The move is in line with the measures announced by Finance and Economic Development Minister Mthuli Ncube on Thursday.
Among other things, Ncube said retailers and wholesalers can now keep all the foreign currency they collect from customers.
The announcement came after shops hiked prices of basic food items in response to the rapid weakening of the Zimbabwe dollar against other currencies.
The removal of import duty on products can result in lower prices for consumers and improved access to goods.
However, removing import duty may also have some negative effects such as loss of government revenue, adverse effects on domestic industries, and dependency on foreign producers.
Meanwhile, in a statement on released on Friday, Buy Zimbabwe chairperson Munyaradzi Hwengwere said the Government’s decision to scrap import duty on basic grocery items will leave the local manufacturing industry vulnerable to cheap imports.
Buy Zimbabwe called for an emergency meeting with wholesalers and retailers to map a way forward.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

List Of Duty-free Grocery Items Released

Finance and Economic Development Minister Mthuli has proposed to raise value-added tax (VAT) from the current 14.5 percent to 15 percent with effect from 1 January 2023.
Presenting his ZWL$4.2 trillion (about US$6.5 billion) budget on Thursday, at the new Parliament building in Mt Hampden, near Harare, Ncube said on average, SADC countries charge 16 percent VAT. He said:
<blockquote>
Zimbabwe charges a comparatively lower rate of 14.5 percent. The VAT rate was reduced from 15 percent with effect from January 1, 2020, in order to support households during the peak period of the COVID-19 pandemic… I propose to reinstate the VAT rate to the previous rate of 15 percent with effect from January 1, 2023.
</blockquote>
Consumers pay VAT when they buy food, and pay for water, electricity, and other services.
Ncube also removed the suspension of duty on basic food items such as rice, maize meal, bath soap, cooking oil and maize meal amongst others. He said:
<blockquote>
The suspension of duty, which expired on November 16, 2022, will not be extended.
The government will, however, monitor prices of basic commodities with a view to ensuring responsible pricing and affordability, failure of which the suspension will be reinstated.
</blockquote>
Ncube, however, said he was reducing the Intermediate Money Transfer Tax (IMTT) on domestic foreign currency transfers from 4 percent to 2 percent.
Meanwhile, former Finance Minister Tendai Biti described the restoration of duties on basic commodities particularly while approaching a festive season as “equally sadistic and bankrupt.” | <a href="https://www.zimlive.com/2022/11/ncube-raises-vat-restores-duty-on-basics-in-sadistic-and-bankrupt-2023-budget/">ZimLive</a>

Ncube Raises VAT, Restores Duty On Basic Food Items

The government has gazetted Statutory Instrument 138 of 2022 which suspends import duty for approved importers of buses.
According to the new regulations, approved importers are public bus operators duly registered in terms of Part III of the Road Motor Transportation Act (Chapter 13:15).
Bus operators will, however, not be allowed to import more than 20 public service buses in any twelve-month period beginning on 1 August 2022. Part of SI 138 of 2022 reads:
<blockquote>
Customs duty shall be suspended on importation of public service buses imported by approved importers in terms of this section at a customs duty rate of zero per centum.
An approved importer shall be allowed to import not more than twenty (20) public service buses in any twelve-month period beginning 1st July, 2022.
The Secretary for Transport and Infrastructural Development shall, on a case-by-case basis, recommend to the Commissioner qualifying public service bus operators duly registered in terms of Part III of the Road Motor Transportation Act (Chapter 13:15).
A public service bus shall be admitted under suspension of duty only if the approved importer has furnished to the satisfaction of the Commissioner.
<img alt="Image" decoding="async" src="https://pbs.twimg.com/media/FZK0248WIAQZuKL?format=png&amp;name=small"/>
</blockquote>

Govt Suspends Import Duty On Public Service Buses

Members of Parliament are now permitted to import two vehicles duty-free provided that the value of the second vehicle does not exceed US$60 000.
The new regulations were announced in Statutory Instrument (SI) 80B of 2022. The SI reads in part:
<blockquote>
A serving Member of Parliament shall be allowed to import not more than two vehicles under rebate in terms of this section within the life of the current Parliament.
Provided that the maximum allowable value of the second motor vehicle under this rebate shall not exceed sixty thousand United States dollars.
</blockquote>
The motivation behind the development has not been explained but in the past, parliamentarians have made numerous demands to Treasury.
MPs have in the past, demanded world-class gyms and recreational facilities to play golf.
They have also demanded diplomatic passports, Land Cruisers, more savoury desserts like trifles and ice cream, an increase in allowances and credit cards when travelling abroad, residential stands, and free parking in Harare CBD among other things.
<h4>More: <a href="https://www.newzimbabwe.com/new-law-allows-mps-to-import-two-us60k-vehicles-duty-free/">NewZimbabwe.com</a></h4>

New Law Allows MPs To Import Two Vehicles Duty-free

Finance and Economic Development Minister, Professor Mthuli Ncube, has said the government has moved to scrap foreign currency duty payment on vehicle imports alongside other measures to enhance the wider use of the Zimbabwean Dollar.
In a statement Friday, Ncube said the measures were being introduced following a stop-gap measure to arrest inflation and promote the local currency. Ncube said:
<blockquote>
All duties and taxes on the importation of designated motor vehicles are now payable in Zimbabwe dollars again up to a limit of 50% of duties and taxes payable and all domestic taxes due from exporters on their export receipts are now payable in both foreign and local currency in direct proportion to the approved export retention. 
All mining royalties are now payable in Zimbabwe Dollars up to a limit of 50% of royalties due.
Government, through various agencies, is presently seized with instituting various measures to enhance the formal use of the domestic currency. These measures are aimed at stemming illegal trade in foreign currency and its associated twin, that of parallel market benchmarking or indexation of prices of goods and services at parallel market exchange rates.
</blockquote>
Under the new measures, if an exporter receives foreign currency, for instance, US$1 000 at a 40% surrender ratio (60% retention), he or she will be obliged 40% of the tax in Zimbabwean and 60% in foreign currency.
Ncube added that the latest developments are prompted by the rapid growth of privately-held foreign currency reserves from levels of around US$300 million in 2018, to over US$2 billion currently in Zimbabwean banks.
He added that official reserves have also increased from less than US$100 million to over US$1.2 billion currently, which includes the US$960 million equivalent in SDRs recently availed by the IMF to Zimbabwe.
<h2>More: <a href="https://news.pindula.co.zw/">Pindula News</a></h2>

All Duties, Taxes On Car Imports Now Payable In Zimbabwe  Dollars - Finance Minister

The Zimbabwe Revenue Authority (ZIMRA) announced the scrapping of import duty for sanitary wear products following the promulgation of Statutory Instrument 264 of 2018.
ZIMRA said in a statement:
<blockquote>There is no customs duty on the importation of sanitary wear for women. The price of sanitary ware in Zimbabwe shot up beyond the reach of many women facing them to use unhygienic materials that expose them to infections and other health-related problems.
In response to the plight of women, the Government scrapped duty and Value Added Tax (VAT) on sanitary wear to make it available and to promote hygiene for women.
Statutory Instrument 264 of 2018 provides for a suspension of duty on sanitary wear for women for imports done during the period December 1, 2018, to November 30, 2019.
This means that no customs duty will be charged on importation of sanitary wear. In addition, the sanitary wear is exempted from paying import VAT, meaning that VAT is not charged in terms of Statutory Instrument 265 of 2018.
Examples of sanitary wear covered under this exemption include products like sanitary towels and tampons. It should be noted that any products that are sanitary wear of any other chapter than 96 will attract the applicable duty.</blockquote>
<h4>More: <a href="https://www.herald.co.zw/sanitary-wear-now-exempt-from-duty/" rel="noopener noreferrer" target="_blank">The Herald</a></h4>

Govt Removes Import Duty On Sanitary Wear Products

Lincoln Moyo has taken the Zimbabwe Revenue Authority (Zimra) to court challenging its decision to charge him duty in foreign currency for his imported Toyota Hilux.
The vehicle was imported from the United Kingdom in December last year and has been stuck at Plumtree Border Post after Moyo failed to raise the required amount in foreign currency to pay duty. Moyo cites Zimra and its Commissioner-General Ms Faith Mazani, as respondents. He also wants an order exempting him from paying storage charges for his car pending the finalisation of the matter.
In his founding affidavit, Moyo said in terms of the law he qualified to be exempted from paying duty for his car in foreign currency. According to  Statutory Instrument 252A-Customs and Excise (Designation of Foreign Currency Dutiable Goods) Notice 2018, goods purchased on or before November 22, 2018 and consigned on or before January 3, 2019 are exempted from the operation of this notice. Moyo said despite applying for exemption the respondents failed to respond to his letter. Zimra is yet to respond.
More: <a href="https://www.chronicle.co.zw/car-importer-takes-zimra-to-court-over-forex-duty/">Chronicle</a>

Man Takes Zimra To Court Over Forex Duty

According to a report by the the Zimbabwe National Statistics Agency (ZimStat), Zimbabweans imported make up and skincare-related items worth $7,2 million.
Zimbabwe also imported deodorants, shaving creams and anti-perspirants worth $2 million for the 10 months from February to October 2018. The country also imported plastic bottles, carboys, flasks and other similar articles of plastic worth nearly $30 million February to October last year. Footwear and leather polishes close to $1,7 million were imported from February to October 2018.  In the same period, $181,793 worth of chewing gum was imported. Zimbabwe’s imports were mainly sourced from South Africa (35,2 percent) Singapore (19,4 percent); United Kingdom (6,4 percent); China (7,5 percent); and Japan (4,5 percent).
More: <a href="https://www.herald.co.zw/zim-splashes-millions-on-luxury-imports/">Herald</a>

Zimbabwe Imports Make Up, Skincare Products Worth $7,2 Million

Speaking during yesterday’s pre-budget seminar in Bulawayo, Finance and Economic Development Minister, Professor Mthuli Ncube said Government as removed duty on sanitary pads.
He said he will announce the details in the forthcoming 2019 National Budget statement but it is as good as done. Said Ncube:
<blockquote>The cost of sanitary pads and removing duty on it , consider it done .We will have something on the budget on this issue of sanitary pads .Consider it done; there is no debate.</blockquote>
More: <a href="https://www.chronicle.co.zw/government-drops-duty-on-sanitary-pads/">Chronicle</a>

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