Govt slashes in parking, towing fees, and levies

Parking fees, including clamping and towing penalty charges, have been halved across all local authorities as part of sweeping reforms in Zimbabwe's transport sector aimed at lowering the cost of doing business.

The cost of vehicle number plates has also been drastically reduced from US$500 to US$50, following the localisation of plate production. Authorities confirmed the new fee still allows producers to operate profitably.

The reforms, announced after yesterday's Cabinet meeting in Harare, are part of a broader review of licences, permits, levies and fees across 12 sectors of the economy. The measures are designed to eliminate unnecessary charges, streamline regulations and make Zimbabwe more competitive.

Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said Cabinet was determined to ease the financial burden on businesses.

"The review process is aimed at reducing the cost of doing business, increasing competitiveness and enhancing the growth of the Zimbabwean economy," Dr Muswere said.

Among the changes, Cabinet approved the scrapping of the US$23 000 duty on transit fuel, which was previously payable to the Zimbabwe Revenue Authority. The levy will be repealed through a Statutory Instrument, with authorities expecting the move to make Zimbabwe a simpler and more attractive route for fuel tankers.

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said additional charges deemed excessive were also removed. These include the US$30 electronic cargo system fee and parking fees previously charged outside the Forbes Border Post in Mutare.

He added that the recently announced presumptive tax on the transport sector is under review as government continues to create a more favourable business environment.

"The impact of reducing and cutting these fees and levies will be instant," Prof Ncube said. "The parking fees of local authorities, we have reduced them by 50 percent of what they are currently charging. The presumptive tax on the transport sector will be re-examined. We are in a cutting mode. We might collect more revenue because increasing the profitability of these enterprises will spur growth."

Cabinet further indicated that the reforms were not merely about reducing costs but strategically aimed at enhancing business profitability and stimulating investment across the economy.

For motorists and transport operators, the immediate relief comes through lower charges for vehicle registration, reduced parking penalties and the elimination of duties and levies that had long inflated operational costs.