Parking fees, including clamping and towing penalty charges, have been slashed in half in all local authorities countrywide as part of the Government’s review of licences, permits, levies and fees in the transport sector.
In addition to this, the cost of vehicle number plates has been reduced from US$500 to US$50.
Car number plates are now produced in Zimbabwe and the new fee remains profitable.
The review of licences, permits, levies and fees in the transport sector aligns with an earlier Cabinet decision to implement a comprehensive set of business reforms across 12 sectors of the economy.
All these measures seek to lower the cost of doing business and enhance economic competitiveness.
Speaking after yesterday’s Cabinet meeting in Harare, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said the Government’s focus was to streamline regulatory overlaps, eliminate unnecessary fees and make it easier for businesses to thrive.
Cabinet also reviewed other fees related to vehicle registration, licensing and ownership transfers, ensuring that the transport sector operates with greater efficiency and lower financial burdens.
Government also took decisive action to eliminate the US$23 000 duty on transit fuel, a move that is expected to have immediate positive effects on the transport industry by making it simpler to route fuel tankers through Zimbabwe.
This duty, previously payable to the Zimbabwe Revenue Authority, will be repealed through a Statutory Instrument, further easing operational costs for transport operators.
“The review process is aimed at reducing the cost of doing business, increasing competitiveness and enhancing the growth of the Zimbabwean economy,” said Dr Muswere.
He said Cabinet also streamlined regulatory overlaps and duplications, rationalised licences and permits, removed unnecessary levies and fees and lowered unjustifiably high levies and fees for the following transport sub-sectors: passenger transport, haulage and cargo, taxi services, and other transport services in tobacco transportation and boating services. “The reviewed licences, permits, levies and fees will be subjected to further refinements. However, Cabinet directed that the US$23 000 duty on transit fuel payable to ZIMRA be immediately scrapped. The relevant Statutory Instrument will be repealed accordingly,” said Dr Muswere.
Speaking at the same occasion, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, said Cabinet also addressed various charges that have been deemed excessive. For instance, the electronic cargo system fee, which was previously set at US$30, has been eliminated, aligning Zimbabwe with regional standards.
Similarly, parking fees outside the Forbes Border Post in Mutare have been removed, alleviating additional financial stress on transport operators.
Prof Ncube said the recently announced presumptive tax on the transport sector is also under review, as authorities continue to seek ways to create a more favourable business environment.
“The impact of reducing and cutting these fees and levies will be instant,” he said. “The issue of number plates, where you were paying US$500, we have reduced that to US$50 and the person producing the number plates is still making a profit with the US$50 charge.
“The parking fees of local authorities, we have reduced them by 50 percent of what they are currently charging.
“The presumptive tax on the transport sector will be re-examined. We are in a cutting mode. We might collect more revenue because increasing the profitability of these enterprises, right across the economy, will spur growth. We do not want people to be discouraged by the cost of doing business.”
Prof Ncube said the reforms were not just about cutting costs, but were strategically designed to enhance the profitability of businesses across the economy.
By reducing burdensome fees and levies, the Finance Minister said the Government sought to stimulate growth and encourage investment in the transport sector, ultimately benefiting the broader economy.
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