ZIMRA gives motorists until December 2026 to clear outstanding vehicle duty

The Zimbabwe Revenue Authority (ZIMRA) has set a new deadline for motorists with unpaid vehicle transfer taxes.

Vehicle owners now have until December 31, 2026, to clear their outstanding special excise duty liabilities.

However, the authority has warned that defaulters will face enforcement measures after the deadline expires.

In Public Notice 62 of 2026, issued on November 3, ZIMRA raised concerns over unpaid vehicle duty assessments.

The authority said several motorists had ignored payment obligations following second-hand vehicle ownership transfers.

Under Section 172BB(1)(b) of the Customs and Excise Act, buyers must pay special excise duty. The applicable rates depend on the prescribed requirements.

ZIMRA explains vehicle transfer tax payment requirements

ZIMRA requires buyers to submit relevant vehicle sale documents to the Commissioner within 14 working days.

The period starts when authorities issue the vehicle’s police clearance certificate.

After receiving the documents, ZIMRA assesses the applicable special excise duty. Motorists must then settle the assessed amount within 30 days.

Failure to meet these requirements attracts additional financial charges.

According to ZIMRA, defaulters face a 30 per cent penalty on outstanding duty. Furthermore, interest accumulates at different rates depending on the payment currency.

Amounts payable in Zimbabwe Gold attract annual interest of 25 per cent. Meanwhile, outstanding United States dollar payments attract annual interest of 10 per cent.

The authority expects affected motorists to clear their principal debts and accumulated charges.

“A grace period up to 31 December 2026 is granted to settle outstanding amounts, including penalties and interest,” ZIMRA said.

Motorists face enforcement after December deadline

ZIMRA has warned that motorists cannot ignore the new payment deadline.

Once the grace period ends, the authority will begin debt recovery procedures. These measures will target outstanding duties, penalties and accumulated interest.

The revenue authority has therefore urged affected vehicle owners to regularise their accounts before December 31.

It also cautioned motorists about possible complications when renewing vehicle licences or arranging travel.

However, certain vehicle ownership transfers qualify for special excise duty exemptions.

These include transfers between spouses, parents and children, as well as inherited vehicles.

The exemptions also cover transfers between companies under common control. Additionally, qualifying transfers to private voluntary organisations receive exemption.

Certain transfers involving the Government of Zimbabwe also qualify under specified conditions.

Motorists should therefore establish whether their transactions qualify for exemptions. Those with outstanding assessments should settle their liabilities before the deadline.

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