More than 50 trucks carrying white cement sit stuck at Chirundu Border Post. Zimbabwe Revenue Authority started enforcing a new 30 percent tax on imports. Augutich Investments filed an urgent court case against this decision. The company argues the tax breaks existing trade agreements with COMESA countries. ZIMRA began collecting the money on May 21 from goods already traveling.
Augutich bought cement from Zambia under old rules that allowed duty-free imports. The COMESA trade agreement from 2000 removes taxes between member countries. The new tax law came out on May 16 but affects shipments from before that date. The company calls this action unlawful and against the constitution. Zambia belongs to COMESA just like Zimbabwe does.
The stuck trucks cost Augutich 200 dollars per day each for delays. This adds up to 10,000 dollars daily for all vehicles combined. The company warns it might lose 2.9 million dollars over the next year. Augutich wants the court to stop ZIMRA from collecting the tax immediately. The firm also seeks a ruling that declares the new tax law invalid against COMESA rules.
Augutich bought cement from Zambia under old rules that allowed duty-free imports. The COMESA trade agreement from 2000 removes taxes between member countries. The new tax law came out on May 16 but affects shipments from before that date. The company calls this action unlawful and against the constitution. Zambia belongs to COMESA just like Zimbabwe does.
The stuck trucks cost Augutich 200 dollars per day each for delays. This adds up to 10,000 dollars daily for all vehicles combined. The company warns it might lose 2.9 million dollars over the next year. Augutich wants the court to stop ZIMRA from collecting the tax immediately. The firm also seeks a ruling that declares the new tax law invalid against COMESA rules.
