By A Correspondent| Finance Minister Mthuli Ncube is shaking up fuel transit protocols with a groundbreaking proposal: a temporary import duty on fuel in transit to neighboring countries, aimed at combating rampant fraud.

In a mid-term budget statement delivered to parliament on Thursday, Ncube highlighted the shortcomings of the current electronic cargo tracking system. Introduced by ZIMRA in 2017, this system, which employs electronic seals and transmitters to monitor cargo, has failed to effectively prevent fuel imported under the Removal in Transit (RIT) scheme from being illegally sold within Zimbabwe without paying the necessary duties.

Ncube’s innovative proposal involves imposing import duties on fuel at the Port of Entry, with refunds issued at the Port of Exit. Set to take effect on August 1, 2024, this measure exempts fuel sourced from the National Oil Infrastructure Company’s Msasa Depot. The Zimbabwe Revenue Authority will manage the duty refunds through specialized bank accounts.

Furthermore, to curb under-declared fuel imports and the misuse of the RIT facility, Ncube has also proposed mandatory fiscalisation of domestic fuel sales starting November 1, 2024. This decision is partly a response to a 2021 scandal where ZIMRA intercepted tanks at the Chirundu One Stop Border Post containing water instead of fuel, falsely declared as destined for Zambia.

By introducing these stringent measures, Ncube aims to close loopholes and reinforce Zimbabwe’s fuel import integrity.