Zimbabwe waives duty on key imports

The Government has waived customs duties on a range of critical imports in the transport, mining and tourism sectors with effect from January 1, under new regulations aimed at stimulating economic activity and easing operational costs in key industries.

The measures are contained in Statutory Instrument (SI) 237 of 2025, gazetted last week by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube. The instrument introduces new tax reliefs and extends existing duty suspensions on strategic imports, including public service buses, mining chemicals and vehicle assembly kits.

In the transport sector, Government has suspended duty on new public service buses with a seating capacity of at least 60 passengers. Under the new framework, electric buses will attract a zero percent duty rate, while diesel- and petrol-powered buses will be subject to an effective duty of 10 percent.

To qualify for the concession, operators must be registered with the Zimbabwe Revenue Authority (ZIMRA) and possess a valid tax clearance certificate. The regulations also impose strict conditions on the use of the buses, prohibiting their sale within five years of importation unless written authority is obtained and the previously suspended duty is paid.

"The commissioner may authorise the disposal of a public service bus on payment of such duty, not exceeding the amount of duty suspended, as he or she thinks fit, if, in his or her opinion, the public service bus cannot be economically used for the purpose for which it was entered under suspension," reads part of the regulations.

Duty may also be remitted if a bus is accidentally destroyed before being used in the importer's business, provided the commissioner is satisfied that reasonable precautions were taken to prevent its destruction.

The tourism sector has also received a boost, with Government extending the duty-free importation of specified motor vehicles by safari and tour operators. The extension will run for two years, from January 2026 to December 31, 2027.

In a move to promote local vehicle manufacturing, Government has introduced a zero percent duty on semi-knocked-down motor vehicle kits imported by approved assemblers. The incentive is intended to encourage local assembly of passenger vehicles, with beneficiaries required to maintain secure storage facilities and detailed stock records for inspection by ZIMRA.

The mining industry will benefit from duty suspensions on essential inputs used in mineral extraction, including oils for gold flotation and chemical substances used in refining and research. Mining companies will be required to sign declarations confirming that the imported materials will be used strictly for their intended industrial purposes.

SI 237 of 2025 also includes provisions affecting the agricultural export sector and general vehicle maintenance, as Government seeks to use targeted fiscal incentives to support productivity, value addition and investment across the economy.