Govt imposes temporary duty on fuel in transit

Finance, Economic Development and Investment Promotion Minister Prof Mthuli Ncube on Thursday introduced temporary import duty on fuel in transit to other countries, a move hoped to help curb rampant cases of transit fraud.

Presenting his mid-term budget statement in parliament, he said the electronic cargo tracking system being used by the tax collector ZIMRA had 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 Prof Ncube said despite the introduction of the Electronic Cargo Tracking System, rampant cases of transit fraud continue unabated, hence, the need to curb such 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. 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,” he said.

Prof Ncube also proposed 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.

New Ziana