The Zimbabwe Revenue Authority (ZIMRA) has given motorists with outstanding special excise duty liabilities arising from the transfer of second-hand vehicles until 31 December 2026 to regularise their accounts, warning that enforcement measures will be instituted against defaulters thereafter.
In Public Notice 62 of 2026, issued on 3 November, ZIMRA expressed concern that some vehicle owners had failed to settle special excise duty assessments issued following changes in vehicle ownership, despite having been notified of their obligations.
The tax authority said Section 172BB(1)(b) of the Customs and Excise Act requires purchasers of second-hand motor vehicles to pay special excise duty at prescribed rates when ownership changes hands.
Under the law, buyers are required to submit documentation relating to the sale of a vehicle to the Commissioner within 14 working days from the date on which a police clearance certificate is issued. Once the assessment has been made, the duty must be paid within 30 days.
ZIMRA said failure to comply attracts a penalty of 30 per cent on the outstanding duty. In addition, interest is charged at 25 per cent per annum on amounts payable in Zimbabwe Gold and 10 per cent per annum on amounts payable in United States dollars.
The revenue authority said all clients with outstanding assessments are expected to settle the principal amount together with any accrued penalties and interest by the end of the year.
“A grace period up to 31 December 2026 is granted to settle outstanding amounts, including penalties and interest,” ZIMRA said.
The authority warned that once the grace period expires, debt recovery measures would be employed to recover all outstanding special excise duty, penalties and interest.
ZIMRA further advised motorists to comply with the notice to avoid possible disruptions when renewing vehicle licences or making travel arrangements.
However, the duty does not apply to all transfers. Exemptions are available where a vehicle is transferred between spouses, between a parent and child, by way of inheritance, between companies under the same control, to a private voluntary organisation or, under specified conditions, to the Government of Zimbabwe.
Source: ZIMRA gives motorists until 31 December to settle outstanding vehicle duty ⋆ Pindula News
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