Washing powder smuggling hits Zim

LIVINGSTONE MARUFU

Zimbabwe could be losing about US$4m a month in unpaid tax through rampant washing powder smuggling in a syndicate involving foreign nationals and officials from the Zimbabwe Revenue Authority (Zimra), it emerged this week.

Business Times can report that foreign nationals that run tuckshops in downtown Harare smuggle at least 30 tonne trucks of Maq washing powder every day.

Zimra and police officers are also said to be part of the syndicate, to facilitate the smooth flow of the transactions.

Zimbabwe entered a deal with Trade Kings, the manufacturers of the Boom washing powder, and has put high taxes on any other imported washing powder to promote the local product.

But the downtown informal traders have now opted to smuggle Maq into the country.

According to the investigations by Business Times, smugglers bring home a 30 tonne truck of Maq washing powder every day with a tax of close to R2m (US$133 211), which is supposed to be paid at the border. Instead, the smuggler is paid R200 000 to deliver the washing powder to Harare from Durban.

It is understood that the truck driver will be paid extra money after delivering the washing powder to downtown tuckshops.

“We take our Maq washing powder directly at number 66 Springbok Road, Longdale, Johannesburg, South Africa, at a wholesale price then we pay a truck driver R200 000 from there to Harare to evade an R2m tax imposed by the Zimbabwean government to push locally produced Boom,” a Congolese tuckshop owner in downtown Harare told Business Times.

He added: “The driver will pay for his way to Zimbabwe and the money he is left with depends on his negotiating skills. We give them an extra incentive for delivering the package.”

National police spokesperson Paul Nyathi said: “We have heard the incidents but we will investigate the matter further.”

Business Times found out that the truck drivers do not have time to rest as they will be offloading the washing powder even on Sundays when most shops are closed.

The Maq’s price for the 2kg packet is around US$2 in South Africa but the smuggled one is said to be landing at US$2.90.

Downtown tuckshops are, however, selling the washing powder at US$4 due to increased risk on the road.

The recognised retailers have limited stocks of Maq due to the high duties imposed on the product.

Various shops are stocked with Boom, Sunlight, and Omo among other brands.

But in downtown, Maq is abundantly available.

In July this year,  top police officers in Beitbridge were nabbed after they allegedly connived to smuggle Maq washing powder.

According to Zimra, smuggling has increased in the five months to May with 13 cases from three recorded in the same period last year.

Zimra’s head of corporate communications, Francis Chimanda told this publication that the tax collector protects the privacy of the individuals.

“We don’t reveal private affairs of the individual taxpayers,” Chimanda said.