ZIMRA To Demand Tax Clearance Before Issuing Vehicle Insurance To Public Transport Operators

ZIMRA has introduced a pivotal policy change that will affect public transport operators nationwide. Effective January 1, 2025, all operators must present valid tax clearance certificates to secure vehicle insurance, as the updated Finance Act No. 2 of 2024 outlines.

This initiative, rooted in amendments to the Income Tax Act [Chapter 23:06], seeks to enhance tax compliance and transparency within Zimbabwe’s transport sector. ZIMRA has partnered with the Insurance and Pensions Commission to enforce these new regulations properly.

Key Requirements for Public Transport Operators

Under section 80A of the revised Income Tax Act, public transport operators, including those managing omnibuses, taxis, and vehicles registered under the Road Motor Transportation Act [Chapter 13:15], must comply with the following:

Obtain a tax clearance certificate from ZIMRA.
Ensure the certificate is issued within 30 days prior to applying for vehicle insurance.
Present the certificate to the relevant certifying authorities to finalize the insurance process.

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Statement from ZIMRA

ZIMRA mandates public transport tax clearance[Image: Daily News]

Acting Commissioner for Domestic Taxes, Mr. M. Chinayi, highlighted the significance of this directive. He stated:

“Despite provisions in the Road Motor Transportation Act [Chapter 13:15] and the Insurance Act, operators of omnibuses and taxis will be required to present a tax clearance certificate issued no earlier than 30 days before application to qualify for vehicle insurance.”

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Role of Insurance Companies and Stakeholders

Insurance companies are tasked with playing a key role in implementing these changes. ZIMRA has called on them to actively promote awareness among public transport operators about the updated requirements. Collaboration between operators and insurers is essential for a seamless transition before the 2025 deadline.

Operators and all insurance companies are encouraged to work closely with ZIMRA to ensure a smooth transition before the January 2025 deadline.