Page 10 - AfrOil Week 19 2022

AfrOil POLICY AfrOil

Zimbabwe court nullifies two fuel taxes

ZIMBABWE SIYABONA Msithu, a High Court justice in introduced the taxes using powers granted to
Zimbabwe, has scrapped two levies imposed by him by parliament in the Finance Act.
Finance Minister Mthuli Ncube in June 2020, However, Justice Msithu said the legislature
saying that only Parliament has the authority to had no constitutional authority to delegate its
take such action. legislative powers to the executive but had to
Msithu ruled that in imposing the carbon tax exercise them itself. He then declared the dis-
and the redemption levy, Ncube had enacted puted section of the relevant act unconstitu-
taxes through a statutory instrument, the state- tional. His ruling, according to The Herald, will
run newspaper The Herald reported on May 4. need the concurrence of the constitutional court
The minister’s action, the judge said, had the to be effective.
effect of amending the tax regime in the coun- The recent increases in world oil prices mean
try, which the constitution describes as the duty that the total landed cost for fuel in Zimbabwe is
of parliament and not the executive branch of high. With taxes and levies added, the fuel price
government. increases further to become among the highest
The ruling was issued in response to a case in southern Africa, according to reports. As
filed by Innocent Gonese, a legislator from the such, Justice Msithu’s ruling could very well
Citizens Coalition for Change opposition party. delight the drivers and other parties who have
Gonese’s petition, as cited by the independent been pressuring the government to overhaul the
weekly The Standard, stated: tax regime to ensure a lower pump price, The
“On 5 June 2020, the respondent published Standard said. ™
SI 123A of 2020. That instrument created a new
taxation regime in respect of carbon tax and the
Noczim (National Oil Company of Zimbabwe)
redemption levy. That new obligation is depend-
ent on whether one is using free funds or not.
“The new regime had the following effect:
Those importing fuel using free funds would
continue paying carbon tax at the rate of 0.03
cents [ZWL0.0003, or $0.000093] per litre per
petroleum product or 5% of the cost. Those
importing fuel other than through free funds
would pay thirty two point five Zimbabwean
cents [ZWL0.325, or $0.10075] per litre of diesel
and one hundred Zimbabwean cents [ZWL1.00,
or $0.31] per litre of petrol.”
Gonese contended that Ncube had vio-
lated the constitution by enacting both taxes.
Responding on behalf of the minister, a gov-
ernment lawyer argued that the respondent The ruling concerns taxes imposed on importers of petroleum products (File Photo)

Tanzanian government approves

TZS100bn grant for fuel price relief

TANZANIA TANZANIA’S Energy Minister January new financial year, the government should dis-
Makamba said on Tuesday (May 10) that the burse a total of TZS100bn to reduce the oil prices
government was preparing to make TZS100bn in the country,” he said.
($43mn) in extra funding available to mitigate He also described the funds as a grant but
the economic impact of rising fuel prices. did not reveal which agencies or organisations
In an address to Parliament, Makamba would be receiving the money.
reported that Tanzania’s president had already The minister went on to say that the new pro-
approved this plan. “President Samia Suluhu gramme would not have any effect on existing
Hassan has instructed that before we get to the budget-funded initiatives in Tanzania.

P10 www. NEWSBASE .com Week 19 11•May•2022