HARARE – Finance Minister Mthuli Ncube has proposed temporary import duty on fuel in transit to other countries, a move hoped to help curb rampant cases of transit fraud.
In his mid-term budget statement presented to parliament on Thursday, Ncube said the electronic cargo tracking system being used by the tax collector, ZIMRA has failed to stop transit fraud.
Government, in 2017, introduced the Electronic Cargo Tracking System (ECTS) that uses electronic seals and transmitters to monitor cargo, in particular fuel, in response to increasing incidences of transit fraud, whereby goods imported under the Removal in Transit (RIT) are offloaded on the local market without payment of the requisite duty.
But Ncube said despite introduction of the system, rampant cases of transit fraud continue unabated, hence, the need to curb the illicit practices.
“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.”
Ncube also proposed measures to deal with under-declared fuel imports.
“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,” he said.
In 2021, ZIMRA intercepted three fuel tanks in transit at Chirundu One Stop Border post for alleged fuel smuggling into Zimbabwe under the guise of transporting it to Zambia, prejudicing government of potential revenue.
The tankers had declared fuel at Forbes Border supposedly on its way to Zambia but got intercepted at Chirundu loaded with water instead of fuel as had been declared.
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