THE Zimbabwe Revenue Authority (Zimra) is set to rake in millions of dollars after announcing new presumptive tax rates for commuter omnibuses, taxis, driving schools and haulage trucks amid an uproar over the new levies.
Zimra announced the new tax regime recently amid a furore by public transporters, adding that the Zimbabwe National Road Administration (Zinara) would be responsible for collecting the taxes.
According to a statement released recently, Zimra will not issue licences to motorists before they pay the presumptive tax or produce a tax clearance certificate.
“A person who is liable to presumptive tax in terms of section 36C of the Taxes Act as read with section 22C of the Finance Act [Chapter 23:04] shall pay such tax in local currency at the official rate of exchange on the day of payment, notwithstanding the currency of trade,” Zimra said.
The affected vehicles, according to Zimra, are those which carry goods or passengers for hire or reward.
A snap calculation shows that in Harare alone, Zimra will collect close to US$1 million in presumptive tax from commuter omnibuses registered in the capital.
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According to the recently released Harare Master Plan, there are 4 087 commuter omnibuses and 97 buses, with 43% of the vehicles registered to operate in the capital alone.
The Harare Youth Transporters Association, which boasts the largest number of members totalling 537 members, who are managing 568 commuter omnibuses and 23 buses, condemned the latest taxes describing them as anti-social.
Other notable associations include GHACO with 350 members and 1 000 commuter omnibuses, and ZUDCO with 500 members, 460 commuter omnibuses and 40 buses.
In the statement, Zimra said commuter omnibuses carrying eight to 14 passengers would pay US$50 each, while kombis carrying 15 to 20 passengers would pay US$60.
According to Zimra, kombis carrying 25 to 36 passengers will pay US$80 while commuter omnibuses carrying more than 37 passengers will pay US$100.
The new taxes will also see taxis carrying more than seven passengers paying US$35 while driving schools for Class 4 and Class 1 and 2 will pay US$50.
Goods vehicles carrying more than 10 tonnes but less than 20 tonnes will pay US$200 while those carrying more than 20 tonnes will be charged US$500.
Vehicles carrying 10 tonnes or less, but with a combination of a truck and trailer of more than 15 tonnes and less than 20 tonnes will also pay US$500.
In an interview with NewsDay, ZUDCO Services chairperson Bindstone Katsande expressed concern over the impact of the taxes on the transport sector.
“We are surprised and touched by the issue of tax presumption because as businesspeople, we are dealing with administration operations, which are additional costs on top of other costs,” he said.
“Zimra is supposed to collect money, which [however, should not be] too much. We need to call for a reduction of the payment to US$60 in a month instead of US$180.”
Katsande said pirate taxis would take advantage and earn more than registered commuter omnibuses because they did not comply with the country’s laws and regulations.
“We are compliant operators who follow the laws and regulations of the country by paying for documentation, but you will discover that mishikashika [pirate taxis] will not be paying that money, at the same time making a lot of money compared to us,” he said.
“The government should do something in applying these taxes. It seems like there’s opposition to what the President recently said (with regards) the government cutting down excessive payments and licence fees that make it harder and more expensive to do business in Zimbabwe.
“Yet, now, out of nowhere, there is an increase on top of existing financial burdens.”
Harare Driving School Owners Association chairperson Tafara Muvhevhi echoed similar sentiments saying the sector has largely been tax compliant, paying their dues on a quarterly basis.
“For instance, when applying for a vehicle fitness certificate at the VID [Vehicle Inspectorate Department], one of the requirements is that we should produce a tax clearance certificate,” he said.
“However, a downward review of the tax regime would be a welcome move given the challenging macro-economic environment we are currently operating in.
“The need for the tax master to mobilise resources through these interventions is very critical, but it must be a delicate balancing act which will not lead to punitive upward reviews of prices to the ordinary consumer.”