Motorists with unpaid special excise duty bills linked to second-hand vehicle transfers have until 31 December 2026 to settle what they owe, the Zimbabwe Revenue Authority (ZIMRA) has warned. The authority says it will pursue debt-recovery measures against defaulters after the deadline.
The grace period covers outstanding duty assessments, together with accumulated penalties and interest. ZIMRA’s notice says: “A grace period up to 31 December 2026 is granted to settle outstanding amounts, including penalties and interest.”
The notice, issued on 3 November, is directed at clients who have already received assessments for special excise duty but have not paid. It is not a general waiver of the tax on all vehicle sales. Motorists with an outstanding bill are being urged to check their position with ZIMRA and pay before the end-of-year cut-off.
The potential cost of delay can grow beyond the original duty. Unpaid assessments may attract a 30 per cent penalty, while interest is charged at 25 per cent a year on amounts payable in Zimbabwe Gold and 10 per cent a year on amounts payable in United States dollars. ZIMRA expects those with arrears to clear the principal duty and any accrued penalties and interest by the deadline.
Special excise duty applies when ownership of a second-hand vehicle changes hands in Zimbabwe. The amount depends on the vehicle’s year of manufacture and engine size. ZIMRA’s published guidance on duty for second-hand vehicle transfers sets out the applicable basis for calculating the charge.
The payment obligation sits alongside a separate requirement to register the ownership change. ZIMRA’s guidance on the transfer process says the seller or person disposing of a registered vehicle must complete the transfer within 14 days of the sale under the Vehicle and Licensing Act. Failure to do so is an offence punishable by a fine not exceeding level four, up to 3 months in prison, or both.
For the duty assessment, buyers must submit documents relating to the sale, including the vehicle’s original registration book, identification for the buyer and seller, proof of purchase or disposal, proof of residence and the relevant Central Vehicle Registry form. ZIMRA’s published instructions say documentation should be lodged within 14 working days of the issue of a police clearance certificate, with assessed duty payable within 30 days.
The authority’s guidance also makes clear that unpaid duty can follow the vehicle through a later sale. A buyer who purchases a car whose previous ownership transfer did not meet the requirements may find that the outstanding special excise duty must be paid before a new transfer can be completed. ZIMRA advises buyers to verify whether duty has been settled before finalising a purchase.
Some transfers are exempt from special excise duty, including qualifying transfers between spouses or between a parent and child, inheritance, transfers between companies under the same control, and transfers to a private voluntary organisation. The exemptions are specific and do not remove the need to complete the ownership paperwork.
The deadline comes as police expand the use of Zimbabwe’s Smart Traffic Management System, which reads vehicle registration plates and sends traffic-offence notifications to the registered owner. Cameras in Harare’s central business district are being used to record offences including speeding, running red lights, using a mobile phone while driving and failing to wear a seatbelt. Police officers review footage before a notification is issued.
That system has brought renewed attention to old vehicle records. When a car is sold but the ownership register is not updated, a traffic notice may still go to the person whose name remains on the registration documents. Police have said motorists have 7 days to respond to a notification and a further 7 days to pay. Ignoring both periods can lead to blacklisting and prosecution.
Police national spokesperson Commissioner Paul Nyathi has warned that sellers remain accountable until the vehicle’s registered owner is changed. “The challenge which we have is that most of us in Zimbabwe do not want to change vehicle ownership. In terms of the country’s Vehicle Registration and Licensing Act, any vehicle owner, whether it is company-owned or family-owned, has to change ownership within two weeks.
“What it entails is that if somebody is driving a vehicle which he or she has acquired and has not changed ownership, they are committing an offence. The seller remains accountable; even if you say ‘I have sold it’, you remain accountable until change of ownership is effected,” Nyathi said.
By the end of September, police figures put the number of possible traffic violations captured by the camera system at about 4.8 million. Officers have said the images are reviewed by personnel at the system’s command and control centre before a fine is sent. Assistant Commissioner Gajiwett Gomo, the police director of information technology, described that step this way: “It’s not only the cameras that are sending the offences, but there is another layer of human validation.”
The camera rollout and ZIMRA’s tax deadline concern different obligations, but both make accurate vehicle records important for motorists. A seller who has not completed a transfer may remain linked to the vehicle for traffic matters, while a buyer may face unpaid special excise duty before registering ownership. Police have also warned motorists to use official payment channels for traffic fines and not to send money to individuals claiming to collect on behalf of the authorities.
Separately, Engineer Jacob Kudzayi Mutisi has called for a broader review of vehicle-import policies, arguing that duty-free import privileges should not be limited to civil servants and public office-holders. His proposal is distinct from ZIMRA’s notice on second-hand vehicle transfers: it concerns customs duties on imported vehicles and the rules governing who may receive concessions.
Mutisi wants the Government to consider a National Vehicle Import Incentive Scheme in 2027 under which each eligible Zimbabwean, regardless of employment status, could import one qualifying vehicle duty-free within a defined period. He has suggested safeguards such as limiting the concession to one vehicle per person, requiring a minimum ownership period and preventing commercial resale abuses.
He has also called for a review of the restriction on importing vehicles more than 10 years old, arguing that affordability, road safety and environmental standards should be considered together. Mutisi says a vehicle can be an economic asset for work, business and family responsibilities, and that access to a concession should not depend solely on whether a person is on a government payroll.
For motorists with current unpaid transfer-duty assessments, however, the immediate date is 31 December. ZIMRA has urged affected clients to verify their balances and settle the assessed duty, penalties and interest before enforcement measures begin.