Online Reporter
Mukudzei Chingwere, Zimpapers Writer
THE Government has announced a raft of measures aimed at lowering the cost of doing business in the transport sector, with a notable 50 percent cut to all local authority parking fees and related penalties including towing and clamping. In addition, the price of vehicle number plates has been significantly reduced from US$500 to just US$50. The review of licences, permits, levies, and fees in the transport sector aligns with an earlier Cabinet decision to implement a comprehensive set of business reforms across 12 sectors of the economy. All these measures are designed to lower the cost of doing business and enhance economic competitiveness.
Speaking at yesterday’s post-Cabinet briefing, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said the Government’s focus is to streamline regulatory overlaps, eliminate unnecessary fees, and make it easier for businesses to thrive.
Cabinet also reviewed other fees related to vehicle registration, licensing, and ownership transfers, ensuring that the transport sector operates with greater efficiency and reduced financial burdens.
The Government has also taken decisive action to eliminate the US$23 000 duty on transit fuel, a move expected to have immediate positive effects on the transport industry. This duty, previously payable to the Zimbabwe Revenue Authority (Zimra), will be repealed through a Statutory Instrument, further easing operational costs for transport operators.
“The review process is aimed at reducing the cost of doing business, increasing competitiveness, and enhancing the growth of the Zimbabwean economy. Cabinet streamlined regulatory overlaps and duplications, rationalised licences and permits, removed unnecessary levies and fees, and lowered unjustifiably high charges for the following transport sub-sectors: passenger transport, haulage and cargo, taxi services, and other transport services including tobacco transportation and boating services.
“The reviewed licences, permits, levies, and fees will be subjected to further refinements. However, Cabinet directed that the US$23 000 duty on transit fuel payable to Zimra be immediately scrapped. The relevant Statutory Instrument will be repealed accordingly,” said Dr Muswere.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, said Cabinet also addressed various charges deemed excessive.
For instance, the electronic cargo system fee, previously set at US$30, has been eliminated, aligning Zimbabwe with regional standards. Similarly, parking fees outside the Forbes Border Post have been removed, easing financial pressure on transport operators. Prof Ncube also confirmed that the recently announced presumptive tax on the transport sector is under review, as authorities continue to explore ways to create a more favourable business environment.
“The impact of reducing and cutting these fees and levies will be instant. The issue of number plates, where you were paying US$500 — we’ve reduced that to US$50, and the person producing the number plates is still making a profit at that price. The parking fees of local authorities have been capped at 50 percent of what they are currently charging,” he said.
Prof Ncube added that the presumptive tax on the transport sector will be re-examined.
“We are in a cutting mode. We might collect more revenue because increasing the profitability of these enterprises — across the economy — will spur growth. We do not want people to be discouraged by the cost of doing business,” he said.
Prof Ncube emphasised that these reforms are not just about reducing costs, but are strategically designed to enhance profitability across the economy. By lowering burdensome fees and levies, the Government aims to stimulate growth and encourage investment in the transport sector, ultimately benefiting the broader economy.
