$24 million lost as vehicles evade licence and tollgate fees

The Parliamentary Portfolio Committee on Transport and Infrastructural Development has revealed that the Zimbabwean government loses an estimated $24 million in potential revenue each year due to at least 200,000 vehicles failing to pay their required licences and tollgate fees.

Knowledge Kaitano, the committee chairman, highlighted this issue during the pre-national budget seminar held in Bulawayo, where he proposed solutions to curb the revenue leakage. He suggested that the amount lost annually could instead be used to drill 7,000 boreholes per year, totaling 35,000 boreholes by 2030.

"There is no aggregated motor vehicle database linking key entities like the Central Vehicle Registry (CVR), Zimbabwe Revenue Authority (ZIMRA), the Police, the Insurance Council of Zimbabwe, and Zinara," Kaitano explained. "As a result, an estimated 200,000 vehicles are evading their licence and tollgate payments, depriving the government of $24 million annually. This money could be used for essential infrastructure projects, such as drilling boreholes."

The committee's recommendation stresses the urgent need for reforms in the toll collection system, proposing the transformation of current toll gates into toll plazas. A toll plaza, which has more lanes than a toll gate, would allow for faster processing of vehicles, reducing traffic jams and improving revenue collection.

"The time is now to roll out toll plazas, a concept that was discussed as early as 2019," Kaitano said. "These plazas will help increase revenue collection, reduce congestion, and enhance road safety by incorporating modern technologies. Upgrading the current toll system can allow for services such as VID certification, road permits, third-party insurance, and ZBC insurance verification."

Kaitano added that Zinara has the funds to build the necessary toll plazas and stressed the need to expand the network of toll plazas, particularly on major roads like Harare-Masvingo and Bulawayo-Victoria Falls, to better manage traffic and increase revenue.

In response to the problem of unlicensed vehicles, Zinara periodically de-registers vehicles that have been unlicensed for over two years. However, many of these vehicles, which are often scrapped or non-functional, still remain registered due to outdated records. To re-register a vehicle, owners must pay outstanding arrears, including insurance and penalties, and secure clearances from the Zimbabwe Revenue Authority and the Vehicle Theft Squad.

The issue of unlicensed vehicles is compounded by a significant decrease in new vehicle registrations. According to the Zimbabwe National Statistics Agency (ZimStats), the number of first-time vehicle registrations dropped by 35% in the second quarter of 2024, falling from 24,428 in the first quarter to 15,890. Similarly, the registration of light motor vehicles also saw a decline of 33.7%, from 18,539 to 12,296.

The committee's recommendations reflect an urgent need for comprehensive reforms in the country's toll and vehicle licensing systems to address these revenue losses and ensure the long-term sustainability of critical infrastructure projects.