Mthuli tighten screws on Kombis, No ZINARA licence without ZIMRA tax certificates

By Daniel Chigundu

Finance and Economic Development Minister Mthuli Ncube has proposed a new requirement for Kombis and taxis in Zimbabwe. According to the proposal, they can only obtain a ZINARA license or insurance if they can provide a tax clearance from ZIMRA.

Currently, vehicles in Zimbabwe need to be licensed by the Zimbabwe National Road Authority (ZINARA) every four months. To obtain this license, motorists must first purchase third-party insurance. Public transport vehicles also require passenger insurance to cover any injuries sustained by passengers in accidents.

However, if Parliament approves the proposal from Minister Ncube to enhance revenue measures, transporters will face greater difficulty in obtaining both the license and insurance.

In his recent 2024 Mid-Year Budget review presented to Parliament, the finance minister expressed his intention to review presumptive tax rates, but with a catch for Kombi operators.

‘’Current legislation provides for the levying of Presumptive Tax on the basis of estimated income of persons engaging in specified trades.

‘’The dynamic nature of the economy requires a review of the Presumptive Tax Regime, cognisant of the significant contribution of such operators to the Gross Domestic Product.

‘’In view of the above, I propose to review the Presumptive Tax Structure downwards in order to provide relief, thereby enhancing tax compliance with effect from 1 September 2024

‘’In order to ensure compliance to the above tax structure, I propose that Goods Vehicles, Taxi Cab or Commuter Omnibuses shall neither be licensed by ZINARA nor be eligible for vehicle insurance unless the operator submits clearance from the Commissioner General (ZIMRA) confirming that the operator is duly registered and has no outstanding tax debt,’’ read the 2024 Mid Year Budget Review statement.

Under the new presumptive tax regime, taxi cab operators will be required to pay $35 per month per vehicle, reduced from the current charge of $100. Owners of omnibuses with a seating capacity of 8-14 passengers will pay $50 per vehicle per month, down from $150. Meanwhile, operators of omnibuses with a seating capacity of 15-24 passengers will pay $60 per vehicle per month, compared to the current rate of $175.