Zimbabwe raises excise duties 300%

THE Zimbabwe Revenue Authority (Zimra) has increased customs and excise duties by 300%, it emerged yesterday.

This came as Government

Gazette statutory instrument 32 of 2019 ushered in a new currency, the real-time gross settlement (RTGS) dollar. The RTGS dollar is largely a virtual currency, with the bond note released in 2016 also now classified as virtual currency.

A statement by Zimra explained how the new duty regime would work: “The new currency affects the clearance of designated goods by converting current balances in the nostro FCA (foreign currency account) prepayment account to ZWR at the prevailing exchange rate with the US dollar.

“All foreign currency payments then appear on the payment receipt or prepayment receipt as ZW RTGS dollars,” it said.

Zimra added that the prepayment account would be used to clear designated goods.

“All values on the bill of entry and form 49 would be reflected in RTGS dollars, although payment would be made in forex,” the tax collector said.

The increase in the customs and excise duties will have a ripple effect on the prices of goods. In January, Zimbabweans protested against fuel price hikes announced by President Emmerson Mnangagwa.

The protests left 17 people dead and more than 80 wounded, according to civil society organisations, following a brutal and bloody crackdown by the military, police and spy agents.

An independent policy research organisation this week warned that the country was likely to experience more protests until the government addressed issues of concern to citizens.

It said there had been a change in the cycle of protests since Mnangagwa’s rise to power following an effective coup in November 2017 and a disputed election last July.

Sivio Institute executive director Tendai Muriswa said intervals between major protests had been shortened to four months under Mnangagwa’s administration compared to up to seven months during former president Robert Mugabe’s lengthy stay in power.

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