Zimbabwe's transport operators buckle under heavy new taxes

When Richard Kureva bought his first battered kombi 25 years ago, the business was simple. Fuel was affordable, taxes were low, and profits were steady. Today, the once-promising transport operator finds himself suffocating under a wave of new taxes and levies that threaten to cripple Zimbabwe's public transport industry.

Kureva, who chairs the Zimbabwe Commuter Omnibus Transport Organisation (ZICOTO), says the new presumptive tax introduced by the Zimbabwe Revenue Authority (ZIMRA) in September 2025 is the final straw. The levy, outlined in Public Notice No. 51 of 2025, requires kombis carrying between 8 and 14 passengers to pay US$50 per month, while larger buses must pay US$100. Taxi operators face a US$35 flat fee, driving schools up to US$100 per vehicle, and haulage trucks as much as US$500 per month.

For operators like Kureva, already juggling multiple costs, the burden is unsustainable. "I earn about US$60 profit a day per kombi, but now I must pay US$60 a month in presumptive tax alone," he said. "We are not against paying taxes, but these levies are too high. Many of our members are giving up."

Kureva listed a long line of other mandatory charges: Zimbabwe Broadcasting Corporation radio licences (US$30 per quarter), insurance (US$170 quarterly), Harare City and Ministry of Transport permits, Vehicle Inspection Department (VID) fees, speed governors, and passenger insurance. Parking vouchers from the City of Harare cost US$2.50 per vehicle daily, while police fines and impoundment fees can reach US$150 per incident.

For small-scale operators, the numbers no longer add up. Ather Mutaisi, another Harare transporter, said he sold two of his three kombis after profits dried up. "Sometimes my drivers bring only US$10 a day after paying police and other costs. It's impossible to sustain," he said. "We need the government to engage us before we collapse."

Economist Godfrey Kanyenze agrees that the new taxes are poorly structured and counterproductive. "In other countries, policies are developed through consultation. Here, they are imposed," he said. "This presumptive tax piles onto existing levies, worsening an already hostile business environment."

Transport operators say the problem is compounded by unfair competition from unregistered kombis that operate freely without paying any levies. "They use illegal ranks, don't pay anything to the city, and yet make more money," said another operator, who only identified himself as Moyo. "It's not a level playing field."

Bus companies are equally strained. Nyamweda Bus Services, which operates four buses between Mhondoro and Chegutu, must now pay US$400 monthly in presumptive taxes. "We only make profits during school holidays or month-ends," said company representative Luckyson Nyamweda. "It's becoming harder to stay afloat."

Truckers face even harsher realities. Hub Freight's finance administrator, Emmanuel Chanyuke, said his company will pay US$8,500 monthly for its 17-truck fleet, all over 20 tonnes. "We can't survive these taxes," he said. "We are pleading for policies that support local transporters instead of choking us."

The transport sector contributes about 3.3 percent to Zimbabwe's GDP and employs over 120,000 people, according to the Zimbabwe National Statistics Agency. But with rising taxes and operating costs, thousands of jobs are at risk.

Driving schools are also struggling. Zimbabwe National Driving Schools chairman Nyasha Dowa said high levies are pushing many operators out of business. "Two-thirds of our income goes to taxes and fees," he said. "We pay for council licences, fire extinguisher permits, VID tests, insurance, and more-but we don't see improvements in services."

Taxi operators face similar woes. "E-hailing services like Bolt and Hwindi are not taxed the same way we are," said Tendai Jonga of the Bulawayo Metered Taxi Operators Association. "We pay over US$600 a year just to operate, while they work freely online. It's killing our businesses."

Former Finance Minister Tendai Biti recently described Zimbabwe's tax system as "toxic" and warned that presumptive taxes encourage non-compliance. "These policies don't formalise the economy-they destroy it," he said.

ZIMRA spokesperson Francis Chimhanda did not respond to requests for comment. Meanwhile, operators like Kureva continue to count their losses, wondering how long they can survive.

"We just want fairness," he said. "We are not asking for handouts-only a chance to keep our wheels turning."