Ivan Zhakata
Herald Correspondent
THE process of amending or repealing statutory levies and fees in various sectors of the economy has started, as Government moves to ensure that the reduction of the charges is translated into binding legal instruments, Justice, Legal and Parliamentary Affairs Minister Ziyambi Ziyambi has said.
In a statement yesterday, Minister Ziyambi said until Parliament formally amended or repealed them, old statutory fees, levies and charges remained enforceable.
This week, the Government announced a raft of reductions and removals of some fees that were seen as too high, in an effort to improve the ease of doing business in Zimbabwe.
Sectors that have already been identified include agriculture, transport, retail licencing and local authority services.
Said Minister Ziyambi: “All fees, levies and charges prescribed in existing laws in the form of primary and subsidiary legislation shall continue in force and effect until such a time when the statutory provisions providing for the same have been amended or repealed in accordance with set procedures.
“The ministry, together with the Office of the Attorney-General, is working with all relevant ministries to ensure that the policy position adopted by Government to reduce the various fees, levies and charges is translated into legally binding legal instruments.”
Parking fees, clamping and towing penalty charges, have been cut by 50 percent in all local authorities, while the cost of vehicle number plates has been reduced from US$500 to US$50.
Car number plates are now produced in Zimbabwe and the new fee remains profitable.
In the agriculture sector, sweeping changes have also been made, especially in the dairy sub-sector where farmers needed 25 permits across 12 agencies; feed manufacturers (23 from 10 departments), beef cattle farmers (18), abattoirs (20) and dairy processors (21 licences).
The requirements were not only time-consuming, but came with heavy financial and administrative burdens on businesses.
Government has since seen it fit to remove duplication, reduce costs and simplify compliance to promote efficiency, competitiveness and formalisation.
Some of the highlights include farm and processor registration fees, such as the Agriculture Marketing Authority (AMA) farm registration fees, which were cut to a US$1 flat fee.
In the past, communal farmers paid US$1, small-scale irrigation farmers on US$2 while A1, A2 and large-scale farmers paid US$3, US$4 and US$5 respectively per year.
Minister Ziyambi said the reforms are part of broader efforts to strengthen the business environment and attract investment.
“We have a positive obligation, as enunciated in section 114 of the Constitution of Zimbabwe, to ensure that statutes are drafted to eliminate any gaps in the law,” he said.
“It is in public interest that we must draft and enact laws that enhance the investment climate and facilitate the ease of doing business in Zimbabwe.”
The Second Republic, led by President Mnangagwa, believes that once the high fees and levies have been moderated, more new investors will commit their funds into the economy while existing investors might consider expanding their businesses for the benefit of citizens through employment creation.
Zimbabwe has a target of attaining Vision 2030, a long-term development blueprint aimed at transforming the country into an upper-middle-income economy.
The proposed reductions in fees and levies are also intended to support the progressive realisation of socio-economic rights enshrined in the Constitution and international agreements Zimbabwe is party to.
Business leaders have welcomed the policy intent but emphasised the need for legal certainty.
Confederation of Zimbabwe Retailers president Mr Denford Mutashu, said reducing levies and charges could help ease operational costs and improve competitiveness once the reforms are formally enacted.
Similarly, the Zimbabwe Taxpayers Platform called for clear timelines on when the changes would take effect to reduce uncertainty for investors and businesses.
The Ministry of Justice, Legal and Parliamentary Affairs says it continues to work with the Attorney-General and line ministries to draft the legal instruments needed to give effect to the policy, signalling a measured approach to reducing costs without bypassing established procedures.
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