Govt imposes duty on fuel in transit

CLOUDINE MATOLA

Finance Minister, Professor Mthuli Ncube, has imposed import duty on fuel on transit to other countries, a move expected to help curb rampant cases of transit fraud.

The duty , according to Professor Ncube, will be paid at the port of entry which will be recovered on acquittal at the port of exist.

Minister Mtuli said at the sidelines of the midterm budget review presentation that fuel is being brought in the country without any payment of duty under the pretext that it is being transited to neighbouring countries.

“The other thing that we propose is really to tighten the issue of fraud, especially around fuel imports, which are in transit to neighbouring countries. Fuel is brought in without any payment of duty, under the pretext that it is being transited to neighbours, but then it is decanted here clandestinely.

“And maybe even water is put in tanks, and then the exploitation is acquitted. So, we really want to tighten that. So, we say to Zimbabwe, please create a special account, and make sure that whatever is paid in is then refunded upon exit with speed, at least within 24 or 48 hours, to make sure that we can curb this fraud around the transportation of fuel through our country into the neighbouring countries,” Ncube said.

He added: “Despite 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.

“The Zimbabwe Revenue Authority is directed to manage the duty refund process efficiently through dedicated bank accounts. 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.”