ZIMRA implements reduced presumptive tax rates for public transport, driving schools, goods vehicles

The Zimbabwe Revenue Authority (ZIMRA) has announced the enforcement of new presumptive tax rates, effective 1 September 2024, targeting commuter omnibuses (kombis), taxi cabs, driving schools, and goods vehicles.

 

This comes under Section 36(C) of the Taxes Act, with the Zimbabwe National Road Administration (ZINARA) serving as the collection agent.

 

Key Tax Rates Introduced
•Kombis (Commuter Omnibuses): US$50 – US$100 per month, depending on seating capacity (8–14 passengers: US$50; 15–24 passengers: US$60; 25–36 passengers: US$80; above 37 passengers: US$100).

 

•Taxi Cabs: US$35 per month (not more than 7 passengers).
•Driving Schools: US$50 for Class 4 and US$100 for Class 1 & 2.
•Goods Vehicles: US$200 for vehicles over 10 tonnes but under 20 tonnes; US$500 for those above 20 tonnes or in combination with trailers.

 

Background: Relief Measures in 2024 Mid-Term Review

 

The government had earlier reduced presumptive tax rates in its July 2024 Mid-Term Budget Review to ease pressure on operators.

 

For instance:
•18-seater kombis saw tax reduced from US$175 to US$60 per month.

 

•Hairdressers had their presumptive tax cut drastically from US$300 to US$30 per month.

 

These measures were meant to provide relief to small-scale operators and align taxation with economic realities.

 

Compliance Requirements

 

ZIMRA stressed that no vehicle license or insurance will be issued without proof of presumptive tax clearance. This means:
•Goods vehicles, taxi cabs, and commuter omnibuses will not be licensed by ZINARA nor insured unless operators produce clearance from the Commissioner General of ZIMRA confirming registration and compliance.

 

•Payment must be made in local currency at the prevailing official exchange rate, even if trade is conducted in foreign currency.

 

Enforcement Outlook

The new presumptive tax structure is part of the government’s broader revenue mobilization strategy, while balancing the need to sustain small businesses. Operators are urged to comply to avoid disruptions to their business operations.

Public Notice No. 51 of 2025 issued on 5 September 2025 formalized these rates.

 

Zim Economic Review