HARARE – The Zimbabwe Revenue Authority (ZIMRA) has announced new requirements mandating public transport operators to produce valid tax clearance certificates before obtaining vehicle insurance, as per provisions of the Finance Act No. 2 of 2024.
The directive, effective from 1 January 2025, is aimed at ensuring compliance with the amended Income Tax Act [Chapter 23:06].
In a statement addressed to the Insurance and Pensions Commission, ZIMRA clarified that insurance companies are now required to enforce the new measures as outlined in section 80A of the Income Tax Act. According to the new regulations, operators of omnibuses, taxis, and other vehicles registered under the Road Motor Transportation Act [Chapter 13:15] must present a tax clearance certificate issued within 30 days of its production to obtain vehicle insurance.
The statement, signed by ZIMRA’s Acting Commissioner for Domestic Taxes, Mr. M. Chinayi, emphasized: “Notwithstanding anything contained in the Road Motor Transportation Act [Chapter 13:15] and Insurance Act, the following persons who are certified, registered, or licensed to operate the business of the omnibus or taxicab… shall not be eligible for vehicle insurance unless a tax clearance certificate is produced to the certifying authority no earlier than thirty days before its production.”
ZIMRA urged stakeholders, particularly insurance companies, to assist in raising awareness about the new requirements. The authority also assured operators that it will provide support to facilitate the registration process and issuance of tax clearance certificates.
The new regulation aims to enhance transparency and accountability in Zimbabwe’s transport sector, addressing tax compliance issues while promoting adherence to fiscal obligations.
Operators and insurance companies are encouraged to work closely with ZIMRA to ensure a smooth transition ahead of the January 2025 deadline.
