Chronicle Editor
Pride Mahlangu, Business Reporter
THE Zimbabwe Revenue Authority (Zimra) has said duty for fuel imported using free funds for own use by companies or for sale in hard cash in the local market should be paid in foreign currency.
Following the promulgation of Statutory Instrument 161 of 2019 with effect from August 2,2019, companies with free funds are allowed to import fuel entirely for use in their production process and pay duty in foreign currency.
The facility was recently extended to designated fuel service stations who are now authorised to sell fuel in foreign currency by the Reserve Bank of Zimbabwe.
“Please be advised that all fuel imported from the 2nd August 2019 using free funds for own use by companies or for sale in foreign currency by designated fuel service stations duty is payable in foreign currency,” said Zimra in a statement.
“For those who imported fuel as a company using free funds for own use or as designated fuel service stations and paid duty in local currency, please come forward and regularise to pay the duty in foreign currency.”
The tax authority said leaded petrol imported using free funds for own use by companies or by designated fuel service stations for sale in foreign currency will incur a duty rate of US$0,45 per litre and the same applies to unleaded petrol. The diesel duty rate has been set at US$0,40 per litre.
The move comes as the country is facing foreign currency challenges, which are hampering the productive sectors as companies struggle to secure critical raw material imports.
Recently, Zimra had said it was experiencing teething challenges in its tax systems as a result of the ongoing transition from the use of the multi-currency system to mono-currency. As such, the revenue collector called on companies to bear with it during the time it battles to bring all the systems to order.
The challenges largely emanated from the fact that there are some sectors, particularly those in tourism and mining that have been exempt from the exclusive use of the Zimbabwe dollar as part of Government efforts to boost production and receipts.
The change from a multi-currency system, which was largely anchored on the US dollar also means the tax collector has to change its tax levying systems, something which is yet to be done conclusively. — @pridesinstinctz
Online Reporter