More than 50 trucks carrying white cement are stuck at Chirundu Border Post after the Zimbabwe Revenue Authority (ZIMRA) started enforcing a new 30% surtax on imports, according to Augutich Investments (Pvt) Ltd, which has taken the matter to the High Court in Harare.
In urgent court papers filed on Thursday, Augutich argues that the new tax, introduced on May 16 through Statutory Instrument 50A of 2025, goes against existing trade rules under COMESA, a regional trade bloc. These rules say that goods from COMESA countries should be exempt from such taxes.
The company says ZIMRA started charging the tax on May 21, even on goods that were already bought and being shipped before the new rule came into effect.
Augutich claims this move is unfair and illegal, and places an unnecessary financial burden on businesses.
In his founding affidavit, Augutich CEO Levy Mashingaidze wrote:
Sometime in the year 2000, the respondent caused the promulgation of Customs and Excise (Common Market For Eastern And Southern Africa) (Suspension) Regulations, 2000, which provide for the exemption of duty / surtax on goods imported and exported between member states of the Common Market For Eastern And Southern Africa hereinafter referred to as ‘COMESA or The COMESA regulations.
With the coming into effect of the COMESA regulations and with the passage of time, the applicant being an importer of white cement and other cement related product would over the years import cement from Zambia for purposes of resale in Zimbabwe. With Zambia being a COMESA member state, the applicant would import the cement duty or surtax free in accordance with the COMESA regulations.
Mashingaidze said Augutich began importing cement from Zambia in 2020 under a Ministry of Industry and Commerce licence, most recently valid through February 2025.
He argued that in September 2024, the firm purchased 70,000 tonnes of cement from Chilanga Cement Plant in Zambia. Mashingaidze added:
The applicant has over 50 haulage trucks now stuck at the Chirundu Border Post due to unforeseen tax obligations.
The hired trucks are charging demurrage of US$200 per day per truck due to the delays. This amounts to approximately US$10,000 per day.
He warned that if the levy is not suspended, Augutich could face an additional US$2.9 million in costs over the next 12 months.
In a certificate of urgency, lawyer Gift Nyandoro of Hamunakwadi and Nyandoro Law Chambers argued that applying the tax retrospectively violates fundamental legal principles.
Augutich is asking the High Court for two main things. First, it wants a temporary order stopping ZIMRA from charging the 30% surtax on cement that was already bought or in transit before 16 May 2025.
Second, the company is asking the court to make a final declaration that the new law introducing the tax, Statutory Instrument (SI) 50A of 2025, goes against Zimbabwe’s trade commitments under COMESA and should be declared invalid.
The Ministry of Finance, Economic Development and Investment Promotion, which is listed as the respondent in the case, has not yet submitted an official response.
Government officials have previously defended the surtax, saying it protects local cement manufacturers from cheap imports.
More: ZimLive
Back to top