New taxes for kombis

HARARE - The cash-strapped Zimbabwean government is widening its tax base by going after commuter omnibuses and metered-taxis.

In a desperate bid to shore up depleted government coffers, Finance minister Patrick Chinamasa said the vehicular population of commuter omnibuses, taxicabs, driving schools and haulage trucks has increased considerably over the past couple of years.

“However, minimal tax revenue has been generated due to non-compliance to legislative requirements by the operators,” he said.

In order to maximise revenue collections as well as spread the burden of tax, he said it was imperative that Zimbabwe takes advantage of existing institutions and infrastructure to enhance compliance.

“I, therefore, propose to appoint the Zimbabwe National Road Administration as an agent for collection of presumptive tax from operators of commuter omnibuses, taxicabs, haulage trucks and driving schools, with effect from January 1, 2015,” he said in his 2015 National Budget presentation last Thursday.

Chinamasa noted that the tax will be collected at the point of licence renewal.

“Operators who are not up-to-date with their presumptive tax obligations will not be able to renew their motor vehicle licence,” he added.

Economic commentators said it was prudent for individual and businesses — whether formal or informal — to contribute to the fiscus for the development of the nation.

Fungai Vongayi, the tax advisory manager at Ernst & Young, said the introduction of taxes for commuter omnibuses was a good strategy by government to boost its purse.

“There must be mechanisms to ensure that all the kombis also contribute to the fiscus,” he said.

“They are in business and must also give something back to the country just like any other business.”

Commuter omnibus operators said they would pass on the burden to passengers.

Comments (5)

this is not a new from of tax mhani. it's only enhancement done? madofo.

kunyepa - 2 December 2014

Prosperous Job or

lovemore - 2 December 2014

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