Staff Reporter
The Passengers Association of Zimbabwe (PAZ) has raised concern that the introduction of presumptive tax on the transport sector will likely force operators to increase fares, worsening the economic burden on commuters.
PAZ national coordinator Tafadzwa Goliati said the new taxes, introduced by the Zimbabwe Revenue Authority (ZIMRA), will affect commuter omnibuses, taxis, driving schools and goods vehicles.
“While we understand the need for revenue generation, we fear that these taxes will significantly burden transport operators and passengers, leading to increased fares and reduced accessibility to public transportation,” Goliati said in a statement.
He warned that smaller operators may struggle to absorb the new costs, resulting in reduced services and pushing some businesses into the informal sector.
“The tax burden will likely be passed on to passengers, exacerbating economic hardships and reducing affordability of public transportation,” he added.
Goliati urged government to conduct a thorough assessment of the policy’s impact on both passengers and operators before implementation.
“The impact on passengers and operators may outweigh the revenue benefits, necessitating a more balanced approach,” he said.
The association also recommended exploring alternative revenue measures that would not affect vulnerable groups and called for wider consultation with stakeholders in the transport industry.
“By working together, we can ensure that the transportation sector remains viable and accessible to all, while also contributing to the country’s revenue needs,” Goliati said.
ZIMRA introduced presumptive taxes as part of its efforts to broaden the tax base and increase compliance in sectors that are largely informal.
