News / National
Cement importer takes Mthuli Ncube to court
31 May 2025 at 14:01hrs | Views
Leading cement importer Augutich Investments (PVT) LTD has taken Finance Minister Mthuli Ncube to the High Court, accusing him of unlawfully imposing a 30% surtax on cement imports covered under the Common Market for Eastern and Southern Africa (COMESA) Free Trade Area (FTA).
The company, which imports cement from Zambia, a COMESA member state, says it has been unfairly taxed on a consignment of 70,000 tonnes of cement valued at nearly US$9.7 million, currently stuck at the Chirundu Border Post.
Under COMESA FTA rules, goods originating from member states are eligible for reduced or zero tariffs, and Augutich insists it should only pay the standard 15% value-added tax (VAT) amounting to about US$1.45 million, not the additional 30% surtax recently imposed.
The dispute arose after Finance Minister Ncube instructed the Zimbabwe Revenue Authority (ZIMRA) on May 22, 2025, to apply the new surtax regime retroactively — even on cement imported before the surtax's official introduction on May 16.
Augutich claims this retrospective tax application is unlawful and violates the principle against retrospective laws. The firm had 50 haulage trucks transporting the cement when the new surtax demand was enforced, causing the trucks to be held up at the border amid failed negotiations with ZIMRA.
In court papers, ZIMRA deflected responsibility, stating that the Finance Minister is the authority behind the tax decision.
Through its CEO, Levy Mashingaidze, and legal representation by Mugiya Law Chambers, Augutich has filed an urgent chamber application seeking a temporary interdict to halt the enforcement of the 30% surtax on white cement, whether artificially coloured or not.
The company is also seeking a permanent order to exempt cement purchased before May 16, 2025, from the surtax. The application argues the surtax violates Section 3 of the Customs and Excise (COMESA) (Suspension) Regulations, 2000, which exempts member state goods from such duties.
The surtax law was introduced on May 16, 2025, and enforced starting May 22, triggering the current legal challenge.
Augutich has a long history of importing cement from Zambia under COMESA regulations, having done so regularly since 2020. It obtained an import permit from the Ministry of Industry and Commerce following a legal settlement signed on May 14, 2025, to allow for its cement imports.
Mashingaidze's affidavit highlights that the new surtax was imposed without prior notice or a grace period, creating "massive" financial prejudice to the company, which also faces additional costs from hiring transporters and potential demurrage fees while the cement remains stranded at the border.
The matter is still before the court, with no hearing date announced.
This case highlights ongoing tensions around trade regulations, tariff policies, and Zimbabwe's obligations under regional trade agreements such as COMESA.
The company, which imports cement from Zambia, a COMESA member state, says it has been unfairly taxed on a consignment of 70,000 tonnes of cement valued at nearly US$9.7 million, currently stuck at the Chirundu Border Post.
Under COMESA FTA rules, goods originating from member states are eligible for reduced or zero tariffs, and Augutich insists it should only pay the standard 15% value-added tax (VAT) amounting to about US$1.45 million, not the additional 30% surtax recently imposed.
The dispute arose after Finance Minister Ncube instructed the Zimbabwe Revenue Authority (ZIMRA) on May 22, 2025, to apply the new surtax regime retroactively — even on cement imported before the surtax's official introduction on May 16.
Augutich claims this retrospective tax application is unlawful and violates the principle against retrospective laws. The firm had 50 haulage trucks transporting the cement when the new surtax demand was enforced, causing the trucks to be held up at the border amid failed negotiations with ZIMRA.
In court papers, ZIMRA deflected responsibility, stating that the Finance Minister is the authority behind the tax decision.
The company is also seeking a permanent order to exempt cement purchased before May 16, 2025, from the surtax. The application argues the surtax violates Section 3 of the Customs and Excise (COMESA) (Suspension) Regulations, 2000, which exempts member state goods from such duties.
The surtax law was introduced on May 16, 2025, and enforced starting May 22, triggering the current legal challenge.
Augutich has a long history of importing cement from Zambia under COMESA regulations, having done so regularly since 2020. It obtained an import permit from the Ministry of Industry and Commerce following a legal settlement signed on May 14, 2025, to allow for its cement imports.
Mashingaidze's affidavit highlights that the new surtax was imposed without prior notice or a grace period, creating "massive" financial prejudice to the company, which also faces additional costs from hiring transporters and potential demurrage fees while the cement remains stranded at the border.
The matter is still before the court, with no hearing date announced.
This case highlights ongoing tensions around trade regulations, tariff policies, and Zimbabwe's obligations under regional trade agreements such as COMESA.
Source - NewZimbabwe
