Zim hikes customs, excise duty by 300 percent
HARARE – The Zimbabwe Revenue Authority (Zimra) has hiked customs and excise duties by 300 percent.
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 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 USD. “All foreign currency payments then appear on the payment receipt or prepayment receipt as ZW RTGS dollars,” the statement 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.
With the increase in the customs and excise duty, it will have a ripple effect on the prices of goods. In January, Zimbabweans protested against drastic fuel price hikes announced by President Emmerson Mnangagwa.
The new currency affects 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 USD.
The protests left 17 people dead and more than 80 others wounded, according to civil society organisations, following a brutal and bloody crackdown by the military and police.
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.
- African News Agency.