A significant shift is occurring in Zimbabwe’s transport sector as ZIMRA (Zimbabwe Revenue Authority) moves to transition transporters from the “fixed” Presumptive Tax regime to a more formal Income Tax system.
While Presumptive Tax was designed for informal operators who don’t keep books, the new directive pushes transporters to register for Income Tax (Self-Assessment). This is a deliberate move to formalize the industry and ensure that those earning high revenues—particularly in haulage and cross-border logistics—pay tax based on actual profits rather than a flat fee.
1. The Directive: From “Flat Fee” to “Actual Profit”
Under the previous system, transporters paid a fixed amount based on vehicle capacity (e.g., number of seats or tonnage). Under the new directive and the Finance Act of 2025:
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Registration Requirement: Transporters are now required to register for a Taxpayer Identification Number (TIN) and enter the Income Tax bracket.
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Quarterly Payment Dates (QPDs): Instead of a monthly “licensing tax,” operators must estimate their annual profit and pay tax in four installments (March, June, September, and December).
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Bookkeeping Mandate: To be on Income Tax, you must maintain proper financial records (fuel receipts, toll fees, wages, repairs) to prove your expenses and net profit.
2. Analysis: The Benefits (The “Pros”)
| Feature | Why it helps the Transporter |
| Deductibility | Under Income Tax, you can deduct operational costs (fuel, tires, maintenance) from your income. If you have a “bad month” with high repair costs, your tax bill drops—unlike Presumptive Tax, which stays the same regardless of profit. |
| Capital Allowances | You can claim wear and tear (depreciation) on your fleet. For a transporter buying a new $100,000 truck, this is a massive tax shield that isn’t available under the Presumptive system. |
| Business Growth | Having a valid Tax Clearance (ITF263) under the Income Tax system is essential for winning corporate contracts and government tenders. Large firms will not hire transporters who only have “Presumptive” status. |
| VAT Claims | Registering for Income Tax often goes hand-in-hand with VAT registration. This allows transporters to claim back the 15.5% VAT they pay on fuel and spare parts. |
3. Analysis: The Risks (The “Negatives”)
| Risk Factor | Impact on Business |
| Compliance Costs | Transporters now need an accountant or tax consultant to file returns. For a “one-man, one-truck” operation, this is a significant added expense. |
| ZIMRA Audits | Once you are on Income Tax, you are subject to full ZIMRA audits. If your record-keeping is poor, ZIMRA can disregard your expenses and “assess” a massive tax bill based on their own estimates. |
| Liquidity Strain | The 30% Withholding Tax becomes a major threat. If a transporter fails to maintain a valid tax clearance, 30% of every payment from a client is withheld, which can kill a transport company’s cash flow. |
| The “ZINARA” Connection | The government is increasingly linking ZINARA vehicle licensing to tax compliance. No tax clearance often means no road access, effectively grounding the fleet. |
4. Will this Boost the Economy?
In the long term: Yes. The directive forces the transport sector to “grow up.” By moving toward Income Tax, the industry becomes more transparent. Banks are more willing to lend to transporters who have audited financial statements, leading to better fleet renewal and safer roads.
In the short term: Turbulent. Smaller “Kombi” and “small truck” operators may struggle with the paperwork. We might see a temporary increase in transport fares as operators pass on the costs of hiring accountants and paying formal taxes to the consumer.
Critical Next Step
If you are a transporter, the “honeymoon” period for informal operations is ending.
Recommendation: Conduct a Tax Health Check. Compare what you currently pay in Presumptive Tax against what you would pay under Income Tax (taking into account your fuel and maintenance deductions). In many cases, a well-managed transport business actually saves money under Income Tax due to high operating expenses.
