Border gridlock as Zimbabwe's new cement tax faces legal challenge

Over 50 haulage trucks loaded with white cement have been stranded at the Chirundu Border Post after the Zimbabwe Revenue Authority (ZIMRA) began enforcing a newly introduced 30 percent surtax on imports, prompting a legal battle in the High Court.

The affected importer, Augutich Investments (Pvt) Ltd, filed an urgent chamber application in Harare on Thursday under case number HCH2500/25, challenging the legality of the levy introduced through Statutory Instrument 50A of 2025. The tax, which came into effect on May 16, has been criticized for allegedly breaching Zimbabwe's obligations under the Common Market for Eastern and Southern Africa (COMESA) trade agreement, which exempts goods traded between member states from duties and surtaxes.

ZIMRA began collecting the surtax on May 21, including on consignments that were purchased and in transit before the new regulation was gazetted. Augutich argues this retroactive enforcement is unlawful and unconstitutional, imposing significant and unexpected financial burdens on the company.

In his founding affidavit, Augutich CEO Levy Mashingaidze stated that the firm has been importing white cement from Zambia since 2020 under a valid licence issued by the Ministry of Industry and Commerce, most recently renewed through February 2025. He said the company had purchased 70,000 tonnes of cement from the Chilanga Cement Plant in Zambia in September 2024, expecting the goods to be imported free of surtax in line with COMESA regulations.

Now, however, the trucks are unable to clear the border, with daily demurrage charges of US$200 per vehicle accumulating to roughly US$10,000 a day. Mashingaidze warned that if the surtax is not reversed, the company could incur costs of up to US$2.9 million over the next 12 months.

The company's legal representative, Gift Nyandoro of Hamunakwadi and Nyandoro Law Chambers, described the move as a violation of legal principles. In a certificate of urgency, he stated that the regulation is being applied retrospectively, thereby punishing businesses for actions taken before the law was enacted. Nyandoro argued that the High Court is the only forum available to seek relief and prevent irreparable harm.

Augutich is seeking a temporary order to stop ZIMRA from applying the surtax to cement already purchased or shipped prior to May 16, and a final declaration that Statutory Instrument 50A of 2025 is inconsistent with Zimbabwe's COMESA commitments and therefore invalid.

While the Ministry of Finance, Economic Development and Investment Promotion - named as the respondent in the case - has not yet filed its response, government officials have previously defended the surtax as a necessary measure to protect domestic cement producers from cheaper imports.

However, the business community and trade analysts have warned that the sudden policy shift could destabilize the construction sector, inflate building costs, and damage Zimbabwe's credibility as a regional trade partner. The outcome of the court challenge is likely to have far-reaching consequences for both trade policy and regional economic integration.