In a significant move aimed at increasing tax inflows the Zimbabwe Revenue Authority has directed insurance companies to issue public vehicles insurance on production of a valid tax clearance certificate.
With effect from 1 January 2025 insurance companies can only issue insurance to public operators vehicles who have a valid tax clearance certificate.
Failure to produce a tax clearance certificate means the transporter can not licence the vehicle since insurance is compulsory for motor vehicles licencing at the Zimbabwe National Road Authority (ZINARA).
The directive is in line with Section 80A of the income tax act .
The nation has lost millions of dollars in revenue due to non remittance of taxes. The tightening of vehicle licensing for public transport operators will enhance collections from the sector.
The introduction of the mandatory tax clearance certificate production will ensure compliance by the public transport operators.
