POPULAR NEWS

  • “Zimbabwe Is Discrediting SADC”

    ZANU PF Accused Of Bribing SADC Elders To Retain From Losing Power

    0 shares
    Share 0 Tweet 0
  • Secret message for ED after his inauguration

    0 shares
    Share 0 Tweet 0
  • Thokozani Khupe Battling Cancer

    0 shares
    Share 0 Tweet 0
  • Presidential Election Results by Sunday evening -ZEC

    0 shares
    Share 0 Tweet 0
  • {WATCH}: Moyo Tlof Tlof Video Breaks The Internet

    0 shares
    Share 0 Tweet 0
  • Trending
  • Comments
  • Latest
“Zimbabwe Is Discrediting SADC”

ZANU PF Accused Of Bribing SADC Elders To Retain From Losing Power

August 30, 2023
Secret message for ED after his inauguration

Secret message for ED after his inauguration

September 5, 2023
Thokozani Khupe Battling Cancer

Thokozani Khupe Battling Cancer

September 7, 2023
Presidential Election Results by Sunday evening -ZEC

Presidential Election Results by Sunday evening -ZEC

August 26, 2023
Govt in panic mode, heavily armed anti-riot police patrol streets’

Zanu PF Supporters In Tanaka Were Thrashed By Black Boots

4
ITI President honored -Well done Sir

ITI President honored -Well done Sir

3
Zim As A Country Has Moved To SA:ANC

Zimbabweans A Burden On South Africa’s Fiscus

3
Malema, EFF blocked from invading white owned land

500 Buses Scheduled To Facilitate Zimbabweans To Go Home And Vote

3
Brito Urged Bosso Fans To Keep The Winning Spirit High

Bosso Confident About Brito Managing The Club And The Warriors

September 22, 2023
Beta Bricks On The Verge Of Shutting Down

Beta Bricks On The Verge Of Shutting Down

September 22, 2023
Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

September 22, 2023
AEK Athens: Hove Albion 2 – 3 Brighton

AEK Athens: Hove Albion 2 – 3 Brighton

September 22, 2023

Stay Connected

  • 647 Followers
  • 23.8k Followers

Recommended

Tongogara Refugee Camp in Chipinge receives a donation of 4 400 metric tonnes

Tongogara Refugee Camp in Chipinge receives a donation of 4 400 metric tonnes

June 20, 2023
Singer-cum -politician, Sandra Ndebele-Sibindi accept defeat

Singer-cum -politician, Sandra Ndebele-Sibindi accept defeat

August 31, 2023

Most Popular

Brito Urged Bosso Fans To Keep The Winning Spirit High
Sports

Bosso Confident About Brito Managing The Club And The Warriors

September 22, 2023
Beta Bricks On The Verge Of Shutting Down
Business

Beta Bricks On The Verge Of Shutting Down

September 22, 2023
Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived
News

Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

September 22, 2023
  • LIVE FOOTBALL SCORES
  • Tech
  • Entertainment
  • Vacancies
  • News
  • Crime and Courts
  • Elections 2023
  • Horror and Disaster
  • Celebrity
  • Politics
  • Business
  • Mjolo
  • Sports
  • Tech
  • Tech
Friday, September 22, 2023
  • Login
News Report
  • News
    Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

    Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

    Bosa Leader  ForeWarns Ramaphosa Not To Attend Mnangagwa’s Inauguration

    Mmusi Maimane Criticized Ramaphosa For Siding With Oppressive Leaders In Zim

    Body Of Unidentified  Man Found With Missing Parts On An Island

    24-Year-Old Mother Up For Murder

    ZIMSEC Announces That It Will Be A Sole Supplier Of Science Chemicals And Consumables To Exam Centres

    ZIMSEC Will Increase Security Measures To Prevent The End Of Year Examinations Leakage

    H0rr0r : Woman Troubled By An Invisible Man For The Past 10 Years

    61-Year-Old Granny Nabbed For Theft

    FAZ Haunts ED

    FAZ Should Shut Down- Zimbabwe Human Rights NGO

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Tech
    Answers: Drivers Licences Validity

    VID: Drivers to collect discs from Zimpost

    Zida reduces  licensing process

    Zida reduces licensing process

    X(Twitter), will give users ability to make voice and video calls – Elon Musk

    X(Twitter), will give users ability to make voice and video calls – Elon Musk

    NetOne Showcases Cutting-Edge Digital Solutions At Agric Show

    NetOne Showcases Cutting-Edge Digital Solutions At Agric Show

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
  • Entertainment
    21-year-old Brooke Bruk-Jackson Crowned Miss Universe Zimbabwe 2023

    21-year-old Brooke Bruk-Jackson Crowned Miss Universe Zimbabwe 2023

    Zimbabwean artist Xander Prat partners SA tech CEO to launch  Nomadhood

    Zimbabwean artist Xander Prat partners SA tech CEO to launch Nomadhood

    ‘Idols SA’ season 19’s top 9 Listed

    ‘Idols SA’ season 19’s top 9 Listed

    IPRs crucial for artists development: NACZ

    IPRs crucial for artists development: NACZ

    Bulawayo annual arts festival scheduled September 26 to 30

    Bulawayo annual arts festival scheduled September 26 to 30

    Mai TT Gains More Popularity Despite Being Jailed: Agricultural Show Peformance

    Mai TT Gains More Popularity Despite Being Jailed: Agricultural Show Peformance

  • Lifestyle
    Best Leadership Award for Professor Chakabwata

    The power of corporate identity By Professor Elias Chakabwata

    MCC to connect 10 000 houses to sewer system

    MCC to connect 10 000 houses to sewer system

    Father  Gets Sentenced To Only 2 Years In Jail After Murdering His Teenage Son In Cold Blood

    Male S_x Education On Prostate Cancer

    The leadership fears . BY Professor Elias Chakabwata

    Working with different personalities .By Professor Elias Chakabwata.

    ZIMBABWE makes significant strides towards ending HIV and Aids

    ZIMBABWE makes significant strides towards ending HIV and Aids

    Zimbabwe’s teenage mothers speak (Part 3)

    Trending Tags

    • Golden Globes
    • Game of Thrones
    • MotoGP 2017
    • eSports
    • Fashion Week
  • Vacancies
  • World
  • Religion
  • Mjolo
  • Celebrity
  • Horror and Disaster
  • Crime and Courts
  • Sports
    • Live Football Scores
  • Harare News
No Result
View All Result
  • News
    Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

    Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

    Bosa Leader  ForeWarns Ramaphosa Not To Attend Mnangagwa’s Inauguration

    Mmusi Maimane Criticized Ramaphosa For Siding With Oppressive Leaders In Zim

    Body Of Unidentified  Man Found With Missing Parts On An Island

    24-Year-Old Mother Up For Murder

    ZIMSEC Announces That It Will Be A Sole Supplier Of Science Chemicals And Consumables To Exam Centres

    ZIMSEC Will Increase Security Measures To Prevent The End Of Year Examinations Leakage

    H0rr0r : Woman Troubled By An Invisible Man For The Past 10 Years

    61-Year-Old Granny Nabbed For Theft

    FAZ Haunts ED

    FAZ Should Shut Down- Zimbabwe Human Rights NGO

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Tech
    Answers: Drivers Licences Validity

    VID: Drivers to collect discs from Zimpost

    Zida reduces  licensing process

    Zida reduces licensing process

    X(Twitter), will give users ability to make voice and video calls – Elon Musk

    X(Twitter), will give users ability to make voice and video calls – Elon Musk

    NetOne Showcases Cutting-Edge Digital Solutions At Agric Show

    NetOne Showcases Cutting-Edge Digital Solutions At Agric Show

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
  • Entertainment
    21-year-old Brooke Bruk-Jackson Crowned Miss Universe Zimbabwe 2023

    21-year-old Brooke Bruk-Jackson Crowned Miss Universe Zimbabwe 2023

    Zimbabwean artist Xander Prat partners SA tech CEO to launch  Nomadhood

    Zimbabwean artist Xander Prat partners SA tech CEO to launch Nomadhood

    ‘Idols SA’ season 19’s top 9 Listed

    ‘Idols SA’ season 19’s top 9 Listed

    IPRs crucial for artists development: NACZ

    IPRs crucial for artists development: NACZ

    Bulawayo annual arts festival scheduled September 26 to 30

    Bulawayo annual arts festival scheduled September 26 to 30

    Mai TT Gains More Popularity Despite Being Jailed: Agricultural Show Peformance

    Mai TT Gains More Popularity Despite Being Jailed: Agricultural Show Peformance

  • Lifestyle
    Best Leadership Award for Professor Chakabwata

    The power of corporate identity By Professor Elias Chakabwata

    MCC to connect 10 000 houses to sewer system

    MCC to connect 10 000 houses to sewer system

    Father  Gets Sentenced To Only 2 Years In Jail After Murdering His Teenage Son In Cold Blood

    Male S_x Education On Prostate Cancer

    The leadership fears . BY Professor Elias Chakabwata

    Working with different personalities .By Professor Elias Chakabwata.

    ZIMBABWE makes significant strides towards ending HIV and Aids

    ZIMBABWE makes significant strides towards ending HIV and Aids

    Zimbabwe’s teenage mothers speak (Part 3)

    Trending Tags

    • Golden Globes
    • Game of Thrones
    • MotoGP 2017
    • eSports
    • Fashion Week
  • Vacancies
  • World
  • Religion
  • Mjolo
  • Celebrity
  • Horror and Disaster
  • Crime and Courts
  • Sports
    • Live Football Scores
  • Harare News
News Report
No Result
View All Result
News Report
No Result
View All Result

FUEL Smuggling A Threat To Economic Growth:Govt

Sean Mlambo by Sean Mlambo
June 20, 2023
in News
0
FUEL Smuggling A Threat To Economic Growth:Govt

FUEL smuggling into Zimbabwe is hampering the Government’s revenue collection and has become a threat to economic growth, despite tax and law enforcement authorities’ efforts to curb the scourge.

While it is easy and legal to import fuel into Zimbabwe, legal imports are charged excise duty, and the smuggling rackets have been set up so fuel can be imported without paying duty, boosting the profits of the smugglers.

RelatedPosts

Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

September 22, 2023
Bosa Leader  ForeWarns Ramaphosa Not To Attend Mnangagwa’s Inauguration

Mmusi Maimane Criticized Ramaphosa For Siding With Oppressive Leaders In Zim

September 22, 2023
Body Of Unidentified  Man Found With Missing Parts On An Island

24-Year-Old Mother Up For Murder

September 22, 2023
ZIMSEC Announces That It Will Be A Sole Supplier Of Science Chemicals And Consumables To Exam Centres

ZIMSEC Will Increase Security Measures To Prevent The End Of Year Examinations Leakage

September 22, 2023

According to the Zimbabwe Revenue Authority (Zimra), smugglers declare fuel coming over the borders as being in transit across Zimbabwe, in theory from one border to another and so not liable to excise duty as the paperwork shows it will not be sold or used in Zimbabwe. But the smugglers offload the fuel in Zimbabwe and use it or sell it here.

Zimra discussed the smuggling in an undated article on its website titled, “IMF spearheads Excise Management Technical Assistance”.

In its 2020 annual report, Zimra noted that the fuel smuggling syndicate involved clearing agents, transporters and a group of its own officers who were falsifying descriptions and quantities.

Economist and former Reserve Bank of Zimbabwe Monetary Policy Committee member, Mr Eddie Cross, said smuggling was a major problem at the country’s “porous” borders owing to corruption. It was compounded by dollarisation, which “makes informal and criminal trading practices easy”, thus impacting negatively on legitimate businesses.

He highlighted that, although the impact of fuel fraud on the economy is “minimal”, tax evasion causes the shrinking of the formal sector and loss of jobs.

“All domestic manufacturers and producers are now feeling the threat of cheap imports and trading practices that do not pay duties or taxes at the borders,” Mr Cross said.

A recent investigation by The Herald revealed that criminal syndicates were taking advantage of disparities in prices around SADC.

At least four truck drivers interviewed said that fuel fraud was rampant.

Speaking on condition of anonymity, one of the truckers, Mr Musumare Mutasa (not his real name), said a driver from a logistics company on assignment to transport 40 000 litres of petrol from Mozambique to Zambia would declare it as transit cargo at Forbes Border Post by Mutare, and then offload it in Zimbabwe

He would then refill the tanker with 40 000 litres of water, seal it, declare the water as petrol at Chirundu Border Post to complete the acquittal process, and cross into Zambia.

Once in Zambia, he would dump the water and buy 40 000 litres of petrol on the Zambian market to deliver to the customer. Because of the different taxes and prices this particular deal would make the driver a profit with the consignment.

Taxation on fuel sums up to US$0,49 for every litre consumed locally, with excise duty accounting for US$0,30/litre for fuel imported through the pipeline and to US$0,35/litre when imported by truck.

So that 40 000 litre consignment listed on the paperwork as being in transit will see the smuggler making a handsome profit.

Besides the excise duties, there are other taxes and levies charged on imported fuel, such as carbon tax, Zimbabwe National Road Administration (Zinara) levy, and debt redemption tax. These other taxes are less easy to avoid since many have to be paid by trucks in transit.

But that 40 000 litre consignment will give the smuggler US$14 000 in

unpaid excise duty to add to the profit, and that can cover a lot of other costs, legal and illegal, and even corruption payments and still show a profit.

Zimra’s performance report for the fourth quarter ending December 31, 2022, shows that excise duty contributed 14,6 percent of total revenue, with fuel accounting for 71,76 percent of all excise duties. So just over 10 percent of the Zimbabwe Government’s tax revenue, the money it uses to pay civil servants, build dams and other infrastructure and keep the country running and growing, comes from fuel duties.

Smugglers, in effect, limit the sort of money the Government can pay civil servants and limit the amount of infrastructure that can be built, since the Second Republic does not borrow.

According to the Global Initiative Against Transnational Organised Crime 2020 3rd quarter risk bulletin, the illicit trade in fuel, which poses significant environmental and public-safety risks, is prevalent throughout Southern Africa.

Think tank ENACT, in a 2019 article, states that illicit trade in fuel is a global challenge that costs globally a total of an estimated US$133 billion a year due to theft, adulteration, fraud, tax evasion and subsidy abuse.

The article also states that proceeds from the illicit trade are often used to fund other organised criminal activities, presenting a threat to economic growth and security in the region.

Mr Pascoe Kurongwa (not real name), an expert in the logistics industry with vast experience in the public and private sectors, said fuel fraud was thriving and a collective effort was required to save the situation.

“The illegal fuel trade is complex and widespread.

“It involves a well-knit syndicate comprising logistics companies, truck drivers and rotten apples in the system that capitalise on price differences in SADC, taxation mismatches and regulation laxity.

“There is so much fraud going on, like adulteration and tax evasion. Most of the smuggled fuel is sold on the black market at ridiculously lower prices since no duty is paid, which is bleeding the Zimbabwean economy and harming legitimate businesses,” Mr Kurongwa said.

In a 2022 article posted on LinkedIn, Cherif Bel Hadj Ali, says fuel fraud leads to loss of anticipated tax revenue and double losses on governments where certain petroleum products are taxed, while others are subsidised.

Under Zimbabwean laws, crude degummed soya oil and Jet A1 are exempted from duty, which creates opportunities for unscrupulous players in the fuel sector to forge import papers and mislabelling what is in the tanker.

Between 2017 and 2020, fuel prices in Zimbabwe were the lowest in SADC, which criminal elements capitalised on to smuggle fuel imported from Mozambique to South Africa, Zambia and the Democratic Republic of Congo at higher returns, causing shortages on the local market.

At least 42 local companies were investigated by the Zimbabwe Anti-Corruption Commission (ZACC) for fuel fraud in January 2020.

Now, the situation has changed as authorities sought to close the gap. Until recently, maximum retail prices were pegged at US$1,71 per litre of diesel and US$1,63 per litre of petrol.

According to figures from the Ministry of Energy and Power Development, Zimbabwe, on average, requires two million litres of petrol and three million litres of diesel a day, which translates to 730 million litres of petrol and 1,1 billion litres of diesel per year.

About 95 percent of the fuel is transported via the Beira pipeline route, which can be effectively monitored and where taxes can be accurately charged. But five percent is transported mainly by road, and rail from South Africa and Mozambique.

Zimbabwe’s northern neighbour, Zambia, relies on ports in Mozambique and South Africa for fuel supplies using Zimbabwe as a transit route. Since Zambia-bound fuel is said to be in transit, it does not attract duty and taxes on the Zimbabwean side, yet some of that fuel is offloaded locally.

Ministry of Energy and Power Development deputy director in the petroleum department Mr Phanuel Muverengwi said adulteration, now “minimal”, used to be a serious malpractice in the past, but the Government has since moved in to curb it.

It involved the adulteration of diesel with paraffin, since paraffin, considered a basic commodity then, was exempted from duty and levies.

“Unscrupulous fuel suppliers would mix diesel with paraffin to take advantage of paraffin’s low price. This prejudiced the Government in the sense that paraffin, a product exempt from duty and levies, was substituting diesel, a product that attracts duty and levies. So, the Government lost revenue in that sense,” Mr Muverengwi said.

He said it was not only the Government that lost out on revenue, but consumers were also short-changed as they were paying for poor-quality fuel that could damage their vehicles.

Mr Muverengwi said to curtail the subsidy abuse, the Government imposed the same duty and levies on paraffin as were imposed on diesel.

He highlighted that not all fuel suppliers adulterated petroleum products, or involved themselves in unethical practices, as there are “good companies” in the sector.

“Also, ZERA (Zimbabwe Energy Regulatory Authority) conducts quality tests on the fuel that is sold in the market,” Mr Muverengwi said.

Source  ZimSituation

Previous Post

Indian Businessman Facing Three Charges Of kidnapping, Theft, And Unlawful Conduct

Next Post

Hasta La Vista-Mukanya In Solo Music Exit

Sean Mlambo

Sean Mlambo

RelatedPosts

Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

by Duduzile Tsakamano
September 22, 2023
0

Harare | Prophetic Healing and Deliverance Ministries leader, self-proclaimed prophet Magaya, has once again come under fire for trying to...

Bosa Leader  ForeWarns Ramaphosa Not To Attend Mnangagwa’s Inauguration

Mmusi Maimane Criticized Ramaphosa For Siding With Oppressive Leaders In Zim

by Mercy Muyambo
September 22, 2023
0

South Africa is experiencing the negative consequences of the leadership failures within Zimbabwe's ruling party, Zanu-PF, which have resulted in...

Body Of Unidentified  Man Found With Missing Parts On An Island

24-Year-Old Mother Up For Murder

by Mercy Muyambo
September 22, 2023
0

HOW rare is filicide, the death of a child at the hands of a parent? And what would drive a...

ZIMSEC Announces That It Will Be A Sole Supplier Of Science Chemicals And Consumables To Exam Centres

ZIMSEC Will Increase Security Measures To Prevent The End Of Year Examinations Leakage

by Duduzile Tsakamano
September 22, 2023
0

The Zimbabwe School Examination Council (ZIMSEC) has said it will increase security measures for the end-of-year examinations to prevent leakages...

H0rr0r : Woman Troubled By An Invisible Man For The Past 10 Years

61-Year-Old Granny Nabbed For Theft

by Mercy Muyambo
September 22, 2023
0

IN a rather surreal and soul-shaking case, a 61-year-old granny was busted for stealing women's underwear and hiding them between...

Next Post
Hasta La Vista-Mukanya In Solo Music Exit

Hasta La Vista-Mukanya In Solo Music Exit

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  • Trending
  • Comments
  • Latest
“Zimbabwe Is Discrediting SADC”

ZANU PF Accused Of Bribing SADC Elders To Retain From Losing Power

August 30, 2023
Secret message for ED after his inauguration

Secret message for ED after his inauguration

September 5, 2023
Thokozani Khupe Battling Cancer

Thokozani Khupe Battling Cancer

September 7, 2023
Presidential Election Results by Sunday evening -ZEC

Presidential Election Results by Sunday evening -ZEC

August 26, 2023
Govt in panic mode, heavily armed anti-riot police patrol streets’

Zanu PF Supporters In Tanaka Were Thrashed By Black Boots

4
ITI President honored -Well done Sir

ITI President honored -Well done Sir

3
Zim As A Country Has Moved To SA:ANC

Zimbabweans A Burden On South Africa’s Fiscus

3
Malema, EFF blocked from invading white owned land

500 Buses Scheduled To Facilitate Zimbabweans To Go Home And Vote

3
Brito Urged Bosso Fans To Keep The Winning Spirit High

Bosso Confident About Brito Managing The Club And The Warriors

September 22, 2023
Beta Bricks On The Verge Of Shutting Down

Beta Bricks On The Verge Of Shutting Down

September 22, 2023
Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

September 22, 2023
AEK Athens: Hove Albion 2 – 3 Brighton

AEK Athens: Hove Albion 2 – 3 Brighton

September 22, 2023

Recent News

Brito Urged Bosso Fans To Keep The Winning Spirit High

Bosso Confident About Brito Managing The Club And The Warriors

September 22, 2023
Beta Bricks On The Verge Of Shutting Down

Beta Bricks On The Verge Of Shutting Down

September 22, 2023
Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

Prophet Magaya Is On Fire For Trying To Avoid A Story Of A Woman He Deceived

September 22, 2023
AEK Athens: Hove Albion 2 – 3 Brighton

AEK Athens: Hove Albion 2 – 3 Brighton

September 22, 2023
  • About
  • Advertise
  • Privacy & Policy
  • Contact
  • Terms of Service
  • Harare News
To Advertise Call us: +2638644308653

News Report Zimbabwe @2023

No Result
View All Result
  • LIVE FOOTBALL SCORES
  • Tech
  • Entertainment
  • Vacancies
  • News
  • Crime and Courts
  • Elections 2023
  • Horror and Disaster
  • Celebrity
  • Politics
  • Business
  • Mjolo
  • Sports
  • Tech
  • Tech

News Report Zimbabwe @2023

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In