Zimbabwe’s New Surtax Halts Cement Imports at Chirundu Border Post

By Shingirai Vambe

A dispute over a newly introduced 30% surtax on imports has brought over 50 haulage trucks laden with white cement to a standstill at the Chirundu Border Post. Augutich Investments (Pvt) Ltd, the importer, has taken the Zimbabwe Revenue Authority (ZIMRA) to the High Court, arguing that the surtax contradicts existing trade rules under the Common Market for Eastern and Southern Africa (COMESA) regulations.

According to Augutich CEO Levy Mashingaidze, the company has been importing cement from Zambia since 2020 under a Ministry of Industry and Commerce licence. The imports were duty-free, as Zambia is a COMESA member state. However, with the introduction of Statutory Instrument 50A of 2025 on May 16, ZIMRA began collecting the 30% surtax on May 21, even on consignments purchased and in transit before the amendment took effect.

Mashingaidze stated that the retroactive application of the surtax amounts to an “unlawful and unconstitutional” financial burden. “The applicant has over 50 haulage trucks now stuck at Chirundu Border Post due to unforeseen tax obligations,” he said.

“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.”

Augutich’s lawyer, Gift Nyandoro, argued that the retrospective enforcement violates fundamental legal principles.

“The law is being applied with retrospective effect. The applicant has no other remedy than to seek this court’s intervention to suspend the implementation of the new surtax on cement already purchased,” Nyandoro wrote.

A temporary interdict preventing ZIMRA from enforcing the 30% surtax on cement already in transit or purchased before May 16, 2025 was applied and a final declaration that SI 50A of 2025 is inconsistent with Zimbabwe’s COMESA obligations and therefore invalid.

It is stated that the Ministry of Finance, Economic Development and Investment Promotion, named as the respondent, has not yet filed a formal response.

Government officials have previously defended the surtax as a measure to protect domestic cement producers from cheap imports. However, critics argue that the abrupt change undermines investor confidence, regional integration, and drives up local construction costs, disrupting the entire building materials market.

If the levy is not suspended, Augutich could incur US$2.9 million in additional costs over the next year. The company warns that the surtax will have far-reaching consequences for the construction industry, including increased costs and potential project delays.