Online Reporter
Business Reporter
Government has migrated large segments of the transport sector from the presumptive tax system to the self-assessment income tax regime, marking a significant shift in how transport businesses are taxed as authorities seek to broaden the formal tax base and improve compliance.
A tax official said presumptive taxes were initially introduced to support the growth of small and emerging businesses by simplifying tax obligations and allowing operators to familiarise themselves with the tax environment before graduating into the mainstream system.
“At this point in time, the transport sector has been recognised and they are being moved from the presumptive tax regime to the self-assessment income tax regime.This is the regime that applies to all major businesses operating in the country,” said Zimbabwe Revenue Authority (Zimra) head of technical services Mr Mathias Chinanayi in an exclusive interview with ZTN today.
According to Zimra, the change affects omnibus operators involved in passenger transport, as well as operators of goods-carrying vehicles with a carrying capacity of 10 tonnes and above.
In addition, marine transport operators, including boats used for fishing and tourism activities, have also been transferred to the self-assessment framework.
Under the self-assessment system, operators will be required to declare their income, expenses and profits, and to compute and remit tax based on actual earnings rather than fixed presumptive amounts.
Authorities believe the move reflects the growing scale and commercial maturity of transport operators, many of whom now generate revenues comparable to formally registered large enterprises.
The transition is expected to enhance transparency, align tax obligations with actual business performance and potentially increase Government revenue, while also placing greater compliance and record-keeping responsibilities on operators.
The shift will require affected businesses to strengthen their accounting systems and financial reporting, but could ultimately benefit compliant operators by creating a more equitable tax environment.
Government has urged operators to seek guidance during the transition period to ensure smooth compliance and avoid penalties as the new regime takes effect.
