Fuel duty spurs Zimra collections

Business Top Stories Zimbabwe

Ndaka Majaka

Excise duty from fuel sales contributed significantly to Zimra’s 2019 third quarter net collections which surged to ZWL$6,42 billion from $1,19 billion collected in the same period in 2018, official data shows.

This is on the back of a policy change in August which brought about an ad valorem tax regime of 40 and 45 percent for diesel and petrol respectively, a departure from specific rates of ZWL$0,90 and ZWL$1,15 per litre for diesel and petrol.

But this comes against a backdrop of low petrol imports which were down 18,24 percent from 130,49 million litres in the third quarter of 2018 to 106,66 million litres in the third quarter of 2019.

Figures released by the Zimbabwe Revenue Authority (Zimra) indicate that petrol imports were down by 24 million litres as diesel imports were marginally up by 0,68 percent.

“Diesel imports marginally increased by 0,68 percent from 265,46 million in the same period in 2018 to 267,26 million in the third quarter of 2019,” Zimra Vice Board Chairperson, Josephine Matambo, said in a statement.

This comes as both petrol and diesel – which is now used by business and domestic customers to power generators as an alternative to electricity in light of power shortages – were in short supply during the period under review.