By Conrad Mwanawashe
HARARE — In a decisive move to protect national revenue and local industry, the Ministry of Finance, Economic Development and Investment Promotion has directed the Zimbabwe Revenue Authority (ZIMRA) to implement a zero-tolerance anti-smuggling campaign, mandating the automatic forfeiture of both illicit goods and the vehicles used to transport them.
The directive, signed by Permanent Secretary George Guvamatanga, comes in response to a National Money Laundering Risk Assessment which reveals that smuggling is one of the largest organized economic crimes in Zimbabwe, costing the country approximately US$920 million in lost revenue annually.
An Economic Drain
The scale of the problem is vast. According to the 2024 report from the Financial Intelligence Unit (FIU), smuggling was the top source of illicit proceeds in the country between 2019 and 2024.
It was followed by the illegal gold and precious stones trade (US$880 million) and corruption (US$730 million).
Overall, money laundering activities, for which smuggling is a key predicate crime, cost Zimbabwe an average of US$1.23 billion annually—a substantial 3.4% of the country’s 2023 GDP.
This illicit trade severely erodes the tax base and creates unfair competition for local manufacturers, who are undercut by a flood of cheap, untaxed goods.
Zero-Tolerance: “Forfeit Without Reservation”
In a circular dated November 12, 2025, the Treasury has now removed any ambiguity in enforcing existing laws.
Citing Section 193 of the Customs and Excise Act, Guvamatanga instructed ZIMRA that “where the law prescribes forfeiture of any goods which are subject of an offence, the said goods should be forfeited to the State without reservation.”
Crucially, the directive specifies that if the value of the smuggled goods is greater than the payable duty, ZIMRA must automatically forfeit them, removing the option for offenders to simply pay the duty and reclaim the contraband.
This punitive measure extends directly to the conveyances used, putting bus operators, haulage firms, and private vehicle owners on high alert that their assets will be seized if used for smuggling.
Part of a Broader 2026 Fiscal Strategy
The move is a key component of the government’s 2026 domestic revenue mobilization strategy.
Finance Minister Professor M. Ncube, who was copied on the directive, has consistently emphasized the urgency of tackling smuggling. The broader strategy includes:
* Strengthening anti-smuggling initiatives and post-clearance audits.
* Streamlining tax expenditures.
* Leveraging technology and big data to improve collaboration between government agencies to reduce tax evasion and avoidance.
* Implementing robust anti-corruption frameworks to close regulatory loopholes.
