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Excise liabilities are calculated at a specific or fixed rate per unit, for example — dollars per kilo or litre, but can also be on an ad valorem or value rate, for example — a percentage of the sales value, but not as a percentage of profitability as is direct taxation.

One of the main aims of excise systems is to raise revenue for the Government, so that the Government can pay for delivery of basic services to the public. Excise Duty discourages the consumption of certain harmful products such as alcohol and tobacco.

Which Products Attract Excise Duty?

Excise type taxes are generally applied to a narrow base of goods and services. This narrow tax base includes consumer or luxury types goods and services, including those goods where excessive consumption is detrimental on social, economic or environmental grounds. Excise duties are payable by manufacturers of the following products:

• Cigarettes and cigars;

• Alcoholic and tobacco products;

• Clear beer;

• Aerated beverages;

• Spirits and wines;

• Pipe tobacco;

• Fuel/petroleum products

• Second-hand motor vehicles.

When and How  Should it be Paid?

These duties are self-assessed by the manufacture through excise returns that are submitted on a monthly basis.

For motor vehicles, the Excise Duty is paid on change of ownership of second-hand motor vehicles upon assessment of value by Zimra.

Disclaimer:

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. Zimra shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.

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