The Zimbabwe Revenue Authority (ZIMRA) has announced that effective January 1, 2025, insurance companies must verify a valid tax clearance certificate before issuing vehicle insurance to public transport operators. This requirement is part of the Finance Act No. 2 of 2024.
The regulation applies to vehicles registered under the Road Motor Transportation Act for both goods and passenger transport.
ZIMRA urged insurance companies to comply with this regulation and to assist operators in obtaining the necessary tax clearance certificates. 
A letter dated 06 December 2024, addressed to the Commissioner of the Insurance and Pensions Commission, by ZIMRA’s Acting Commissioner, Domestic Taxes, M. Chinanayi, reads:
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RE: PRODUCTION OF VALID TAX CLEARANCE CERTIFICATES BEFORE INSURANCE OF VEHICLES UPON LICENCING – FINANCE ACT No. 2 OF 2024
Reference is made to the Finance Act. No. 2 of 2024 which was gazetted on 25 October 2024 and which amended the Income Tax Act [Chapter 23:06] by introducing new requirements that insurance companies need to comply with.
Please be advised that in terms of section 80A of the Income Tax Act, insurance companies are now required to ensure that effective 1 January 2025, no public transport operators are issued with vehicle insurance unless they produce a valid tax clearance certificate. The section reads:
“(5) Notwithstanding anything contained in the Road Motor Transportation Act [Chapter 13:15] and Insurance Act, the following persons who are certified, registered or licensed to operate the business of the omnibus or taxicab for the carriage of goods or passengers for hire or reward, in whose name the goods vehicle, omnibus or taxicab is or is required to be registered in terms of the Road Motor Transportation Act [Chapter 13:15] and Insurance Act shall not be certified, registered or licensed by ZINARA nor be eligible for vehicle insurance unless (at the time the certification, registration or licensing of the person concerned is effected or renewed) there is produced to the certifying, registering or licensing authority under the Act concerned a tax clearance certificate valid no earlier than thirty days before its production.”
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ZIMRA says from 2025, public transport operators need a tax clearance certificate to get vehicle insurance. This is a new rule under a law passed in 2024. The rule applies to both passenger and goods transport vehicles. ZIMRA wants insurance companies to follow this rule and help operators get the certificates. A letter was sent to the Insurance and Pensions Commission explaining this new requirement. Insurance companies can't give vehicle insurance to public transport operators without a valid tax clearance certificate starting in 2025.

ZIMRA To Enforce Tax Clearance Certificate Requirement For Public Transport Operators

The City of Bulawayo has begun implementing its Public Transport Policy, which had been postponed due to the outbreak of the coronavirus disease 2019 (COVID-19) pandemic.
In a statement released on Tuesday, November 5, Bulawayo Town Clerk Christopher Dube said the policy was originally approved by the Council on October 3, 2012.
He said the primary objective of the Public Transport Policy is to establish a safe and efficient public transportation system for the residents of Bulawayo. Said Dube:
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The formulation of the Policy involved consultation with the Public Transport Operators, Commuters and other key stakeholders.
One of the major components of the Policy was the signing of Service Level Agreements with Transport Operator Companies operating in the City.
However, the onset of the COVID-19 pandemic and suspension of operations by independent Public Transport Operators in March 2020, delayed the signing of the agreements.
With the lifting of COVID-19 restrictions and the resumptions of operation by Public Transport Operators, the implementation of the Policy has gone back on track and the City of Bulawayo signed Service Level Agreements with Public Transport Companies on Friday, 18th of October 2024.
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The public transport companies that have been approved and are recognized by the City of Bulawayo are Bulawayo City Transit Trust, BUPTA Limited, Bulawayo West Transporters Private Limited, Tshova Mubaiwa Transport Co-Operative Company (Private) Limited, and VUTA Taxies (Private) Limited.
The City of Bulawayo has since advised the public transport companies to take up their positions at the respective termini to enable servicing of their designated service areas.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The City of Bulawayo is finally starting to put their Public Transport Policy in place after delays from the COVID-19 pandemic. The policy aims to make transportation safe and efficient for residents. The City has made agreements with different transport companies to provide services. Now that COVID-19 restrictions are lifted, the policy is back on track. Approved transport companies like Bulawayo City Transit Trust and others are ready to start operating. The City is telling them to go to their assigned spots to start providing services to the residents.

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