By Alois Vinga
THE Zimbabwe Revenue Authority (ZIMRA) has commenced tax collections for fuel in transit as part of the broader strategy to minimize transit fraud.
In his mid-term budget statement, Finance Minister, Mthuli Ncube said the electronic cargo tracking system being used by the tax collector, ZIMRA, has 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.
Despite the introduction of the system, rampant cases of transit fraud continue unabated, hence, the need to curb the illicit practices, prompting the new measures.
“Accordingly, the ZIMRA wishes to advise its valued clients and the public of the 2024 Midterm budget pronouncements by the Minister of Finance, Economic Development and Investment Promotion relating to the payment of duty for fuel in transit to mitigate against transit fraud.
“With effect from August 10 2024 all fuel, petrol, diesel, paraffin and jet A!, in transit imported through ports of entry by road, is now required to pay duty and levies on entry,” said Ncube.
Under the new policy, the duty and levies will be refunded at the port of exit upon compliance with all the transit procedures, including submission of proof that the fuel has been exported.
“Consignees’ and or the representatives should approach Zimra at the port of entry to initiate the fuel clearance and payment process. For the refund process once the fuel has been exported they should approach ZIMRA at the port of exit to initiate the requisite refund process,” added the taxman.