Mthuli Ncube bows to pressure, lowers tollgate, pa...

Mthuli Ncube bows to pressure, lowers tollgate, passport fees

Audrey Galawu

Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube has succumbed to pressure and reduced tollgate fees by 50% of the proposed amount for 2024.

The minister also bowed to pressure after saying he would lower the price of a standard passport to US$150, from the US$200 proposed in his Budget speech.

The document currently costs US$120.

In another concession, the 1 percent wealth tax on home owners was also reviewed to affect only second homes, not primary residencies while also raising the threshold to properties worth at least US$250 000 from the US$100,000 he proposed previously.

However, the tax will be capped at a maximum US$50 000 per year for properties worth over US$5 million.

The downward review, which Prof Ncube proposed in a marathon meeting of Parliament that lasted into the early hours of Friday, follows public outcry over the proposed fees hikes.

Toll fees are currently pegged between US$2 and US$10, depending on the type of vehicle.

Light motor-vehicles fees are currently pegged at US$2, while US$5 was proposed for the premium roads and US$4 for other roads.

For minibuses, the proposed fee was US$8 for premium roads, US$6 for other roads while the current fee is pegged at US$3.

Professor Ncube had also proposed to increase bus tollgate fees from the current US$4 to US$10 for premium roads and US$8 for other roads.

For heavy vehicles, Professor Ncube proposed US$15 for premium roads, US$10 for other roads while the current fees are fixed at US$5.

Speaking to Zim Now, Harare motorist, Tapiwa Mutizamhepo said the fees reductions is a positive change for the motorists as the formerly proposed fees were ‘outrageous’.

“The revise downwards of the tolling fee by 50% is a welcome development as it lessens the burden on the pockets of both motorists, public operators and the travelling public. I feel the initial proposed fees were a bit on the steep end, and such costs are often passed on the commuting public by way of increased fares,” he said.

Meanwhile, the Customs Duty to be paid for importing high-end motor vehicles have been fixed and do not include motor vehicles of a commercial nature or importation by government.