ZIMRA’s new presumptive vehicle taxes could push prices up, worsen poverty – legislator

By Staff Reporter

The Zimbabwe Revenue Authority (ZIMRA)’s newly introduced presumptive taxes will burden vulnerable citizens already struggling with stagnant salaries and rising living costs, Norton legislator Richard Tsvangirayi has said.

ZIMRA yesterday announced new presumptive vehicle taxes, which go up to as much as US$500.

The new presumptive monthly taxes are as follows: commuter omnibuses US$50 for 8 to 14 passengers, US$60 for 15 to 24 passengers, US$80 for 25 to 36 passengers and US$100 for 37 passengers and above.

Taxi cabs of not more than 7 passengers are now required to pay US$35 per month.

Driving schools will also have to pay US$50 for class 4, and US$100 for class 1 and 2.

Goods vehicles more than 10 tonnes but less than 20 tonnes are now required to pay US$200 and more than 20 tonnes US$500, while 10 tonnes or less but with a combination of truck and trailers of more than 15 but less than 20 tonnes US$500.

Responding to these new taxes Tuesday, Tsvangirayi warned that this will only drive up the prices of goods and services while worsening poverty.

“The new presumptive taxes introduced by ZIMRA are unfair and will have a direct negative impact on the most vulnerable in our society.

“Salaries have remained stagnant, yet taxes continue to rise, pushing the cost of goods and services beyond the reach of many. This will only deepen poverty, running contrary to the SDGs, particularly the goal of eradicating poverty, as well as the objectives of NDS1, which seeks to reduce the cost of doing business,” Tsvangirayi said.

He also urged ZIMRA to pursue incentive-based strategies to boost compliance instead of punitive measures that threaten livelihoods.

“While the intention may be to encourage companies to register, formalise their operations, and increase government revenue, alternative strategies must be pursued.

“These strategies should focus on incentivising compliance rather than relying on punitive measures that exacerbate the economic hardships already faced by ordinary citizens. In this regard, ZIMRA must urgently revise these figures downwards to ensure fairness and protect livelihoods.”