Ease of doing business: More levy cuts

Mukudzei Chingwere

Senior Reporter

THE Second Republic has, under its ongoing reforms to enhance the ease of doing business, scrapped and reviewed licences and permits across the residual sectors of agriculture, education, transport, sport and natural stone export sub-sector.

Addressing yesterday’s post-Cabinet media briefing, Information, Publicity and Broadcasting Services Minister Dr Zhemu Soda said the Government remained focused on reducing costs, eliminating unnecessary red tape, and streamlining regulatory processes to support local and formal sector growth.

Latest reviews include licences, permits, levies and fees charged by ministries, departments, and agencies, particularly in the agriculture, education, transport, sport, and natural stone export sub-sectors.

To ensure comprehensive coverage of the economy, Cabinet expanded the process to include outstanding sectors that were not covered in the initial 13 priority sectors approved last month.

“Cabinet approved the streamlining of duplicated and overlapping regulatory licences and permits, removed unnecessary levies and fees and lowered unjustifiably high residual levies and fees,” Minister Soda said.

Cabinet approved the reduction of the Agricultural Marketing Authority’s Industrial hemp registration fees and also the reduction of the Medicines Control Authority of Zimbabwe’s industrial hemp application processing fee.

In education, the Ministry of Primary and Secondary Education’s fees —comprising school annual affiliation fees, ZIMSEC annual affiliation fees, and examination fees — remain at current levels, while the formalisation of the registration of tricycles and licensing of riders is on the                                                                               cards.

“The Vehicle Change of Ownership fees remain unchanged for all types of vehicles,” said Minister  Soda.

Apart from that, a one stop shop facility will be created to facilitate vehicle change of ownership.

In the sporting sector, the Sport and Recreation Commission’s six percent gate takings levy has been reduced by half, while the Zimbabwe Football Association’s six percent levy on gross income of match day revenue has also been halved.

The Premier Soccer League Levy, currently 10 percent of net income of match day revenues, was reduced to four percent.

Dr  Soda announced the reduction of the local authorities’ 15 percent venue hire levy to 10 percent of total gross attendance.

The local authorities’ outdoor advertising fee was capped at US$2,50 per square metre, while cemetery entry fees were abolished.

“Meanwhile, the reviews will be effective upon the finalisation of the requisite statutory instruments,” said Minister Soda.

While acknowledging progress in earlier announcements, Finance and Investment Promotion Minister Professor Mthuli Ncube said some elements of the reforms were still outstanding and had not yet been fully applied.

“The Government has made progress in policy pronouncements in terms of reduction of these fees and licensing procedures, but there are some that are still outstanding,” said Professor Ncube.

“The issue of parking fees in local authorities is still outstanding and also the 50 percent reduction in some of the local authority fees has not yet been implemented, as well as penalties in clamping fees.

“This is an issue we have asked the Ministry of Local Government and Public Works to work with local authorities to make sure that it is implemented.”

Prof Ncube said the delay in implementing some fee reductions was due to existing contracts that already specify fixed charges.

Announcing new caps or lowering fees would effectively alter those contractual terms and to avoid arbitrary policy changes, the Ministry of Local Government would engage local authorities in negotiations to ensure compliance with the new directive, while still respecting the validity of current agreements.

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