Duty in forex for car imports

“I, therefore, propose to review excise duty on cigarettes to US$25 per 1000 sticks with effect from 1 December 2018,” he said.

Alluding to the current market developments which have also distorted the fuel market, Prof Ncube said the country’s fuel has become relatively cheaper compared to prices obtaining in the region, a situation which has created an arbitrage opportunity for local consumers and transiting vehicles.

“This arbitrage opportunity has partly contributed to the increase in consumption of fuel products, with volumes for the period January to October 2018, amounting to US$1,29 billion.

“The increase in consumption is clearly unsustainable, considering that the available foreign currency reserves have to be shared among other critical priorities,” said Prof Ncube.

“I, therefore, propose to increase excise duty by seven cents per litre on diesel and paraffin and 6,5 cents on petrol to reduce the arbitrage opportunities. This measure takes effect from 1 December 2018”.

While some taxpayers have been constrained by economic challenges, the Minister said others have deliberately chosen to evade or defer payment of taxes. He noted that in some cases, taxpayers have voluntarily wound up companies and registered new establishments in order to avoid settling the outstanding tax obligations.

“Company directors are, thus, deliberately violating their fiduciary responsibility, hence are contributing to the accumulation of unpaid tax obligations. Such actions constitute negligence, fraud and abuse of authority.

“I, therefore, propose that directors or shareholders of a company that wound up voluntarily in order to avoid payment of the taxes be jointly and severally liable for the tax liability,” he said.

In view of technological advancements that have enabled foreign companies, particularly satellite broadcasters and e-commerce platforms to provide local residents with services from offshore sources, Prof Ncube said this bracket must be subjected to taxation as the activity generating the income was actually paid from a source within Zimbabwe.