Online Reporter
Fidelis Munyoro
Chief Court Reporter
THE High Court case involving a cement importer seeking an interdict against the Zimbabwe Revenue Authority (ZIMRA) over a 30 percent surtax duty on imported cement bought or in transit prior to May 16 this year has been postponed to Monday.
Augutich Investments (Pvt) Ltd filed the lawsuit against Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, arguing that the tax violates regulations of the Common Market for Eastern and Southern Africa (COMESA) which exempt goods originating from member States from such tariffs.
Justice Happias Zhou, presiding over the matter, deferred the hearing after raising the need for Zimra to be joined as a second respondent, the importer having to sue both the Minister who sets the duty and Zimra who collect it.
As the implementing body enforcing the Statutory Instrument at the heart of the dispute, Zimra’s participation in the proceedings was deemed essential.
Augutich’s lawyer, Mr Ashiel Mugiya, confirmed that the court has issued an order for Zimra to be served with the application, requiring the authority to respond before the hearing resumes on June 10.
The company is seeking a declaration that Statutory Instrument 50A of 2025, which introduced the surtax, is inconsistent with Zimbabwe’s COMESA obligations and, therefore, invalid.
The company bought 70 000 tonnes of cement from Zambia for US$9 659 999, expecting to pay only the 15 percent VAT that all goods, imported or locally procured have to pay, with this amounting to US$1 448 999.
However, on May 22, Zimra began enforcing the surtax retroactively on goods purchased before May 16.
This sudden policy shift left the company with a US$1,4 million tax burden and 50 haulage trucks stranded at the Chirundu Border Post after negotiations with Zimra officials broke down.
In its urgent chamber application, Augutich argues that retrospective application of the surtax is both unreasonable and legally untenable.
The company contends that under COMESA’s Free Trade Area framework, goods from member States are exempt from such duties.
It further highlights the financial strain caused by the policy, including escalating transport costs and contractual demurrage fees.
Augutich’s chief executive, Mr Levy Mashingaidze, detailed in his founding affidavit that the cement importation process was regulated by the Ministry of Industry and Commerce, which issued the necessary permits.
After a legal dispute with the ministry, the parties reached a settlement on May 14, just days before the surtax was introduced without notice or a grace period.
Augutich asserts that the minister’s actions contravene Section 3 of the COMESA Regulations, which explicitly exempt goods traded within the region from surtaxes.
The company has been importing cement from Zambia for resale in Zimbabwe since 2020, relying on COMESA’s framework to conduct its operations.
The imposition of the surtax, it argues, threatens to undermine years of compliance with regional trade protocols and disrupt its business operations.
Statutory Instrument 50A of 2025 was implemented on May 16, with enforcement beginning six days later.
The company maintains that the lack of prior warning or stakeholder consultation has caused significant financial harm, including delays and additional costs associated with its logistics chain.
Augutich has asked the court to strike down the surtax, arguing that its enforcement on cement purchased before the Statutory Instrument’s promulgation violates both legal principles and regional trade obligations.
