Zimra roots for industrial retooling, says duty rebates cut investment costs

Thupeyo Muleya

Beitbridge Bureau

THE Zimbabwe Revenue Authority (Zimra) has urged businesses in Matabeleland South to formalise operations, stay compliant, and use duty rebates to retool and drive industrial growth.

The call was made by Zimra’s Customs Division representative, Ms Annie Nhekede, during a Business Breakfast Meeting held on Wednesday in Beitbridge, while presenting on “Navigating Duty Rebates for Industrial Re-tooling: How local businesses can import capital equipment duty-free”.

The meeting was organised by Matabeleland South Provincial Affairs and Devolution Minister Albert Nguluvhe in partnership with the Municipality of Beitbridge and the Beitbridge Rural District Council.

It was held under the theme “From Potential to Productivity: Unlocking Matabeleland South’s Economic Potential.”

In her presentation, Ms Nhekede said the authority’s mandate goes beyond revenue collection to facilitating legitimate trade, advising Government on fiscal incentives, and protecting society against smuggling and abuse of reliefs.

She said retooling was necessary considering that many firms still run antiquated machinery, which keeps capacity utilisation and competitiveness low.

In addition, she said removing customs duty on plant and machinery lowers the upfront cost of new investment.

Ms Nhekede also highlighted that postponing VAT on large equipment frees working capital during installation and ramp-up.

“Some incentives are designed to drive production, value addition and jobs under NDS2,” she said.

“In some instances, the business may make use of the rebate-reduction or complete waiver of customs duty, provided they meet the set conditions, and we also have facilities where duty is not collected at importation, but liability remains attached to the goods.

“Duty becomes due if conditions are breached. There is also the deferment of VAT facility where temporary postponement of import VAT for qualifying capital goods for own use, paid later under an approved plan.”

She also highlighted manufacturer rebates under SI 187 of 2024 for furniture and luggage-ware manufacturers, and suspensions under SI 237 of 2025, which provides 0 percent duty on semi-knocked-down vehicle kits for approved assemblers, mining materials such as flotation oils, materials for preparing and packaging fresh produce for export, and new public service buses with 60+ seats.

She added that SI 239 of 2025 repealed several older rebates. Giving practical guidance, Ms Nhekede urged businesses to confirm tariff headings before ordering, keep tax affairs current, obtain Ministry and Treasury recommendation letters early, use licensed clearing agents, and pre-clear road imports before arrival.

She warned against importing first and applying for relief later, assuming VAT falls away with 0 percent duty, lending or selling rebated equipment informally, relying on repealed rebates, and undervaluing equipment.

“Opportunities for Matabeleland South include mining and beneficiation where 0% duty on mining plant supports local processing, horticulture with duty-free farm machinery and suspended duty on export packaging, manufacturing with input rebates and VAT deferment, and leveraging Beitbridge’s position as the country’s busiest port of entry,” said the official.

Speaking on Domestic Taxes, Mr Blessing Pfigu said every business must officialise through registration with Zimra and other relevant authorities.

He said taxpayer obligations include keeping proper records for up to 6 years, submitting correct returns on time, paying tax due on time, and displaying Tax Clearance Certificates at business premises to avoid 30 percent withholding tax.

“False declarations and late submissions are offences under the Income Tax Act,” he emphasised.

Mr Pfigu also highlighted Zimra’s Block Management System (BMS), which they started implementing from January 1, 2023, where ZIMRA officers conduct door-to-door visits to check compliance.

“The BMS involves Zimra officers engaging all taxpayers through door-to-door visits, checking on all compliance issues related to the authority,” he said.

 

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