In an effort to combat widespread transit fraud, Finance Minister Mthuli Ncube has proposed a temporary import duty on fuel being transported through Zimbabwe to other countries.
According to media reports, despite the introduction of an electronic cargo tracking system in 2017, designed to monitor fuel shipments and prevent illegal offloading, cases of transit fraud have continued to surge.
The system, which uses electronic seals and transmitters, has failed to effectively curb the practice of importing goods under the guise of transit, only to offload them locally without paying the required duties.
By imposing a temporary import duty, the government hopes to stem the tide of transit fraud and ensure that all goods being transported through Zimbabwe are properly accounted for and taxed.
ALSO READ: Drought forces Ncube to revise Zimbabwe’s economic growth projection down
“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,” Ncube said.
“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 on 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.”
