ZIMRA is giving car buyers with unpaid transfer taxes one last chance to clear their debts before debt collection kicks in. The Zimbabwe Revenue Authority says drivers who still owe special excise duty must pay up, or they could face action once the grace period runs out.
The warning comes through Public Notice 62 of 2026. Officials say some buyers have failed to pay tax after taking over used cars, despite receiving assessments. Those unpaid bills are still due, and the extra charges can add up fast.
Under Section 172BB(1)(b) of the Customs and Excise Act, buyers have a legal duty to pay the tax when their deals qualify. First, they must send sale papers to the Commissioner no later than 14 business days after police issue a clearance certificate.
ZIMRA then works out the tax bill. Once assessed, the buyer gets 30 days to settle it. Miss that window, and the cost rises.
The late fee is 30% of the duty still owed. Interest also applies, with a 25% yearly rate for debts in Zimbabwe Gold and 10% per year for U.S. dollar balances. Yep, leaving the bill unpaid can get expensive.
There is a cutoff, though. Affected drivers have until the close of December 2026 to pay the original tax, any fines, and interest. After that, ZIMRA plans to use its debt recovery powers against those who have not settled.
Another catch involves car paperwork. The agency has flagged possible trouble with vehicle license renewals and travel plans for people who leave these debts unpaid.
But not every change of car title attracts the levy. Some family transfers, such as those between married partners or between parents and their children, are exempt. Cars passed on through inheritance may also qualify.
Other exceptions apply to firms with shared control, eligible private voluntary organizations, and certain deals linked to the Zimbabwean government.
For buyers caught in this, the first move is to check whether the transaction falls under an exemption. Anyone with a valid unpaid assessment will need to clear the balance before ZIMRA starts collecting.
The warning comes through Public Notice 62 of 2026. Officials say some buyers have failed to pay tax after taking over used cars, despite receiving assessments. Those unpaid bills are still due, and the extra charges can add up fast.
Under Section 172BB(1)(b) of the Customs and Excise Act, buyers have a legal duty to pay the tax when their deals qualify. First, they must send sale papers to the Commissioner no later than 14 business days after police issue a clearance certificate.
ZIMRA then works out the tax bill. Once assessed, the buyer gets 30 days to settle it. Miss that window, and the cost rises.
The late fee is 30% of the duty still owed. Interest also applies, with a 25% yearly rate for debts in Zimbabwe Gold and 10% per year for U.S. dollar balances. Yep, leaving the bill unpaid can get expensive.
There is a cutoff, though. Affected drivers have until the close of December 2026 to pay the original tax, any fines, and interest. After that, ZIMRA plans to use its debt recovery powers against those who have not settled.
Another catch involves car paperwork. The agency has flagged possible trouble with vehicle license renewals and travel plans for people who leave these debts unpaid.
But not every change of car title attracts the levy. Some family transfers, such as those between married partners or between parents and their children, are exempt. Cars passed on through inheritance may also qualify.
Other exceptions apply to firms with shared control, eligible private voluntary organizations, and certain deals linked to the Zimbabwean government.
For buyers caught in this, the first move is to check whether the transaction falls under an exemption. Anyone with a valid unpaid assessment will need to clear the balance before ZIMRA starts collecting.
