Proposed Revenue Measures and Industry Support in 2022 Fiscal Proposals
The 2022 fiscal proposals include revenue measures related to Customs and Excise, such as rebates on capital equipment for specified industries and suspension of duties on dairy products. Additionally, the suspension of duty on raw cheese and motor vehicles for the tourism industry has been extended. These measures aim to support key sectors and enhance economic growth.
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2022 FISCAL PROPOSALS CUSTOMS AND EXCISE DIVISION
TAX POLICY LEGISLATIVE MEASURES 2022 NATIONAL BUDGET. The following is a summary of the proposed revenue measures with regard to Customs and Excise: and relief
Industry Support Rebate of duty on capital equipment imported for use in specified industries The facility to be replaced by a duty-free tariff regime with effect from 1 July 2022 To strengthen the provisions governing the Facility and minimize loopholes, with effect from 1 January 2022 the following measures will be implemented: Companies applying for the Rebate of Duty facility should be incorporated; No third-party companies shall be granted rebate of duty. A minimum threshold of US$10 000 of the value of equipment is required for processing a Rebate. 1. 2. 3.
Industry Support : Dairy Industry Suspension of Duty on Milk Powder Suspension of duty on milk powder extended with proposed for the year 2022, as follows: Processor Proposed Allocation for 2022 FCMP( Kg) 1 000 000 1 000 000 30 000 SMP (Kg) 1 000 000 1 000 000 10 000 Dairiboard Zimbabwe (Pvt) Ltd Dendairy (Pvt) Ltd Machiareer Inv (Pvt) Ltd T/A Mr Brands Prodairy (Pvt) Ltd Kefalos Cheese Products Nestle Zimbabwe (Pvt) Ltd 750 000 350 000 500 000 120 000 500 000 - It is also proposed to introduce a levy of 5% on the value of imported dairy products. The proceeds will be used to re-capitalise the Dairy Revitalisation Fund
Dairy Industry (Contd) Suspension of Duty on Raw Cheese The suspension of duty on ring-fenced quantities of raw cheese, extended for a further 12 months, beginning 1 January 2022, as follows: Name of company Ring fenced allocation Kefalos Cheese Products 200 000Kgs 10 000Kgs Gouda Gold. t/a Yomilk
Tourism Industry Suspension of Duty on Motor Vehicles used by Safari and Tour Operators Suspension of duty on the motor vehicles imported by the Safari and Tour Operators extended for a further 2 years, beginning 1 January 2022.
Sports Rebate of Duty on Sports Kits Donated to Sports Association: In order to facilitate timeous clearance of donations, the Commissioner will be delegated authority to approve the rebate of duty on donated sporting kits, upon recommendation by the Sports and Recreation Commission and the Ministry responsible for Sports and Recreation.
Suspension of Duty on Vehicles Imported by Immigrants The rebate of duty on motor vehicles imported by immigrants to be replaced with suspension of duty and the benefit to be limited to motor vehicles purchased at least six months prior to arrival. The following administrative provisions to minimise the abuse of the Rebate/Suspension Facility to be implemented: Maximum value of the motor vehicle that benefits under the Suspension / Rebate of Duty be pegged at US$ 40 000; In the event of change of residential address, a person granted Rebate of Duty should notify the Commissioner within a period of fourteen days. Any person who has been granted Suspension/Rebate of Duty should report to the nearest customs office once a year, failure of which full duty waived at the time of importation shall become due and payable; and, 1. 2. 3.
Suspension of Duty on Motor Vehicles for the Physically Challenged Similar conditions and penalties applicable to immigrant s rebate to be imposed in order to minimize abuse of the facility.
Rebate of Duty Facility on Motor Vehicles Imported by Serving Civil Servants The facility will not be applicable to senior civil servants from 1 January 2022 but will remain in place for other civil servants who have been in service for a period of at least ten years subject to the below threshold - S$3,500 (Grade B and C), - US$5,000 (Grade D and E) and - US$10,000 (Deputy director)
Revenue Enhancement Measures Excise Duty Duty on cigarettes to be increased from 20% + USD5/1 000 cigarettes to 25%+USD5/1 000 Flat rate of duty to be introduced on energy drinks at USD0.05/litre or the local equivalent
Revenue Enhancement Measures Levy on New Cellular Telephone Handsets To be introduced at USD50 with collection being affected at the time of registration of the handset with a Mobile Network Provider. The handset owner will be due a refund from ZIMRA if the duty due on the handset has been accounted for. Fuel Levy To be pegged at a maximum of 2 cents per litre of both diesel and petrol from the current 2 cents and 6 cents on diesel and petrol respectively.
Other Measures Duty Free Certificates: Fuel and Motor Vehicles To cease duty free facility on Importations of fuel and motor vehicles government. These measures take effect from 1 January 2022. Ports of Entry and Routes Chinhoyi to be designated as a Customs House Transit Cargo proposed to introduce a penalty of USD1 300 for failure to observe the rule that all vehicles conveying break bulk cargo are required to be covered by a single tarpaulin tent with reinforced holes at the edges to allow the placement of magnetic ceiling cable and electronic seals.
Other Measures Estimated Assessments: Manufacturers of Excisable Products Whereas manufacturers of excisable products are required to submit an excise return by the 20th of the following month together with the payment thereof, some of the manufacturers do not submit returns timeously. In order to enforce compliance, ZIMRA will be empowered to issue an estimated assessment where a manufacturer of excisable products fails to submit the return by the due date.
Other Measures Payment of Excise Duty in Foreign Currency In order to ensure fairness and equity in the tax treatment of excisable products, excise duty will be levied in the currency of trade i.e. where excisable goods/services are sold in foreign currency excise duty should be paid in foreign currency.
Other Measures Excise Duty on Pre-Owned Motor Vehicles With effect from 1 January 2022, buyers of pre-owned motor vehicles to pay Special Excise Duty within 30 days from date of assessment, after which interest and penalty is chargeable on the outstanding tax. The buyer is precluded from taking up insurance in the name of the seller, if transfer has not been effected.
Other Measures Warehousing of Pre-Owned Motor Vehicles in Bond Pre-owned motor vehicles will not be allowed to be imported into a bonded warehouse. Those already in bonded warehouses, should be entered into consumption within 6 months beginning 1 December 2021, failure of which such vehicles shall be forfeited to the State
Review of Administrative Fees Review of Administrative Fee for Tourism Rebate Forms. The forms will now be chargerd US$20 or local currency equivalent from the current ZWL10, with effect from 1 January 2022. Parking fees The fees to be increased from ZWL20 to US$20 per hour or local currency equivalent. Furthermore, a fine of US$20 or the local currency equivalent will be charged on vehicles that park for every hour beyond the permissible 3 hours. Effective 1 January 2022
END OF PRESENTATION THANK YOU.
