News / National
Rampant fraud on fuel in transit worries Mthuli Ncube
26 Jul 2024 at 16:01hrs | Views
Finance Minister Mthuli Ncube has proposed a temporary import duty on fuel in transit to other countries to address ongoing issues with transit fraud.
In his mid-term budget statement to parliament on Thursday, Ncube highlighted that the current electronic cargo tracking system, implemented by ZIMRA in 2017, has not effectively curbed these fraudulent practices.
The system, which uses electronic seals and transmitters to monitor cargo, was designed to prevent goods imported under the Removal in Transit (RIT) scheme from being sold locally without the required duties being paid.
Despite the introduction of the system, transit fraud persists. Ncube's new proposal aims to impose import duties on fuel at the Port of Entry, with refunds processed at the Port of Exit. This measure, effective from August 1, 2024, will not apply to fuel sourced from the National Oil Infrastructure Company’s Msasa Depot. The Zimbabwe Revenue Authority will handle the duty refund process through dedicated bank accounts.
Additionally, Ncube has proposed mandatory Fiscalisation of domestic fuel sales starting November 1, 2024, to tackle under-declared fuel imports and misuse of the RIT facility. This move follows a 2021 incident where ZIMRA intercepted fuel tanks at Chirundu One Stop Border Post that were found to be carrying water instead of fuel, which had been falsely declared as en route to Zambia.
In his mid-term budget statement to parliament on Thursday, Ncube highlighted that the current electronic cargo tracking system, implemented by ZIMRA in 2017, has not effectively curbed these fraudulent practices.
The system, which uses electronic seals and transmitters to monitor cargo, was designed to prevent goods imported under the Removal in Transit (RIT) scheme from being sold locally without the required duties being paid.
Despite the introduction of the system, transit fraud persists. Ncube's new proposal aims to impose import duties on fuel at the Port of Entry, with refunds processed at the Port of Exit. This measure, effective from August 1, 2024, will not apply to fuel sourced from the National Oil Infrastructure Company’s Msasa Depot. The Zimbabwe Revenue Authority will handle the duty refund process through dedicated bank accounts.
Additionally, Ncube has proposed mandatory Fiscalisation of domestic fuel sales starting November 1, 2024, to tackle under-declared fuel imports and misuse of the RIT facility. This move follows a 2021 incident where ZIMRA intercepted fuel tanks at Chirundu One Stop Border Post that were found to be carrying water instead of fuel, which had been falsely declared as en route to Zambia.
Source - zimlive
