Government has scrapped the US$23 000 duty on transit fuel, in a move expected to lower costs in the transport sector and stimulate economic growth.
The decision was announced yesterday by the Minister of Information, Publicity and Broadcasting Services, Dr Jenfan Muswere, during a post-Cabinet media briefing in Harare.
The development follows Cabinet’s approval of a comprehensive review of licences, permits, levies and fees across the transport sector. The review aligns with a July 29, 2025 decision that authorised the implementation of broad business reforms in 12 sectors of the economy.
Dr Muswere said the reforms are aimed at making Zimbabwe more competitive while easing the cost of doing business.
“Cabinet directed that the US$23,000 duty on transit fuel payable to ZIMRA be immediately scrapped. The relevant Statutory Instrument will be repealed accordingly,” said Dr Muswere.
The Minister explained that the decision was part of a wider rationalisation exercise targeting excessive and duplicative regulatory requirements.
“Cabinet streamlined regulatory overlaps and duplications, rationalized licences and permits, removed unnecessary levies and fees, and lowered unjustifiably high levies and fees for the following transport sub-sectors: passenger transport, haulage and cargo, taxi services, and other transport services in tobacco transportation and boating services,” he said.
In Zimbabwe, duty on transit fuel involved paying applicable duties and levies upfront at the port of entry, which were then refunded at the port of exit upon successful completion of the transit procedure and proof of export. The policy, enacted on August 10, 2024, was intended to reduce fuel smuggling and curb revenue loss.
It covered all fuel types, including petrol, diesel, paraffin and Jet A1 transported by road. However, industry players argued that the system increased costs, created inefficiencies, and discouraged use of Zimbabwean transit routes.
The reforms extend to cross-cutting licences and fees that have long affected operators across multiple industries.
These include vehicle registration by the Central Vehicle Registry (CVR), licencing by the Zimbabwe National Road Authority (ZINARA), vehicle change of ownership procedures handled by CVR, ZINARA and the Zimbabwe Revenue Authority (ZIMRA), as well as parking fees and related traffic management charges by local authorities.
According to Cabinet, the streamlining exercise is expected to improve efficiency in service delivery, eliminate unnecessary bureaucracy, and boost investment confidence in the transport sector.
Dr Muswere noted that while the reviewed charges will be subjected to further refinements, the scrapping of the fuel transit duty takes immediate effect.
“This reform is consistent with the Second Republic’s agenda of reducing the cost of doing business, enhancing competitiveness and accelerating economic growth,” he said.
The announcement marks another milestone in the Government’s reform programme, which continues to target key enablers of growth to unlock the full potential of the economy.
