Finance, Economic Development and Investment Promotion Minister Mthuli Ncube has proposed a temporary import duty on fuel in transit to other countries, in a move aimed at curbing rampant cases of transit fraud, reported <a href="https://www.zimlive.com/ncube-proposes-temporary-duty-on-fuel-in-transit-to-curb-rampant-fraud/">ZimLive</a>.
In his Mid-Term Budget Review Statement presented to parliament on Thursday, Minister Ncube acknowledged that the electronic cargo tracking system (ECTS) being used by the Zimbabwe Revenue Authority (ZIMRA) has failed to effectively stop transit fraud.
The government introduced the ECTS in 2017, which uses electronic seals and transmitters to monitor cargo, particularly fuel imports. This was a response to increasing incidents of transit fraud, where goods imported under the Removal in Transit (RIT) scheme were being offloaded on the local market without paying the required duty.
However, despite the implementation of the ECTS, Minister Ncube said that rampant cases of transit fraud continue unabated. He said:
<blockquote>
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 to fuel uplifted from National Oil Infrastructure Company, Msasa Depot.
The Zimbabwe Revenue Authority is directed to manage the duty refund process efficiently through dedicated bank accounts.
</blockquote>
Ncube also proposed measures to deal with under-declared fuel imports. He said:
<blockquote>
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.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Finance Minister Mthuli Ncube wants to stop fraud with fuel being sent to other countries. He says the current tracking system is not working well. A new plan is to charge duty on fuel when it enters Zimbabwe, and get a refund when it leaves. This will start in 2024 and won't apply to local fuel. There will also be new rules to make sure fuel is declared correctly. The goal is to stop people from cheating the system and selling fuel without paying the right taxes.

Fuel Latest News

Latest Jobs