Opinion / Columnist
Zimra announces goes after public transport operators
4 hrs ago | Views
The government of Zimbabwe is desperate to raise money for the Fiscus. Public transport operators will no longer be able to buy Insurance unless they can prove they are Tax Compliant.
The Zimbabwe Revenue Authority (ZIMRA) has announced a new policy requiring public transport operators to produce valid tax clearance certificates before obtaining or renewing vehicle insurance. The measure, set to take effect on 1 January 2025, is part of amendments introduced in the Finance Act No. 2 of 2024, enacted on 25 October 2024.
Public transport operators must now present a tax clearance certificate when seeking vehicle insurance or license renewals, according to amendments to Section 80A of the Income Tax Act [Chapter 23:06]. This new requirement applies to operators registered under the Road Motor Transportation Act [Chapter 13:15] and the Insurance Act.
Tax clearance certificates are required to be issued within 30 days prior to submission to ensure compliance. This policy will directly affect operators of goods vehicles, omnibuses, and taxicabs used for hire or reward, as they will be unable to secure certifications, licenses, or insurance without valid documentation.
In a communication addressed to the Insurance and Pensions Commission (IPEC), ZIMRA has emphasized the need for insurance companies to align with the new regulations. To facilitate the transition, ZIMRA has pledged to assist operators in registering for tax clearance certificates. Stakeholders are encouraged to raise awareness among affected parties to ensure smooth implementation of the law by 1 January 2025.
Failure to comply with the new requirements will render operators ineligible for vehicle insurance, a mandatory condition for legal operation. ZIMRA believes this initiative will not only improve tax compliance but also bring greater accountability to the transport sector.
Public transport operators are urged to act promptly to secure their tax clearance certificates and avoid disruptions to their services. Insurance companies, meanwhile, must update their procedures to accommodate the new legal requirements.
For further details, ZIMRA advises operators to contact its offices or visit their website for guidance on the registration process.
This policy marks a significant step in strengthening Zimbabwe's tax administration system and fostering compliance across key economic sectors. Public transport operators are reminded of the January 2025 deadline to ensure adherence to the law.
The Zimbabwe Revenue Authority (ZIMRA) has announced a new policy requiring public transport operators to produce valid tax clearance certificates before obtaining or renewing vehicle insurance. The measure, set to take effect on 1 January 2025, is part of amendments introduced in the Finance Act No. 2 of 2024, enacted on 25 October 2024.
Public transport operators must now present a tax clearance certificate when seeking vehicle insurance or license renewals, according to amendments to Section 80A of the Income Tax Act [Chapter 23:06]. This new requirement applies to operators registered under the Road Motor Transportation Act [Chapter 13:15] and the Insurance Act.
Tax clearance certificates are required to be issued within 30 days prior to submission to ensure compliance. This policy will directly affect operators of goods vehicles, omnibuses, and taxicabs used for hire or reward, as they will be unable to secure certifications, licenses, or insurance without valid documentation.
In a communication addressed to the Insurance and Pensions Commission (IPEC), ZIMRA has emphasized the need for insurance companies to align with the new regulations. To facilitate the transition, ZIMRA has pledged to assist operators in registering for tax clearance certificates. Stakeholders are encouraged to raise awareness among affected parties to ensure smooth implementation of the law by 1 January 2025.
Failure to comply with the new requirements will render operators ineligible for vehicle insurance, a mandatory condition for legal operation. ZIMRA believes this initiative will not only improve tax compliance but also bring greater accountability to the transport sector.
Public transport operators are urged to act promptly to secure their tax clearance certificates and avoid disruptions to their services. Insurance companies, meanwhile, must update their procedures to accommodate the new legal requirements.
For further details, ZIMRA advises operators to contact its offices or visit their website for guidance on the registration process.
This policy marks a significant step in strengthening Zimbabwe's tax administration system and fostering compliance across key economic sectors. Public transport operators are reminded of the January 2025 deadline to ensure adherence to the law.
Source - byo24news
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