Regional Trade Tensions Rise as Cement Importer Challenges New Surtax
In a move that’s sending shockwaves through the business community, a local cement importer, Augutich Investments, has taken the Minister of Finance and Economic Development to court over a recently introduced surtax. The company claims the tax is not only unlawful but also contradicts the regulations of the Common Market for Eastern and Southern Africa (COMESA), a regional trade agreement aimed at promoting economic integration among member states.
At the heart of the dispute is the Customs and Excise (Surtax Tariff) (Amendment) Notice, 2025 (No.6), which was introduced on May 16, 2025. Importers argue that this new surtax goes against the COMESA agreement, which exempts member states from paying duties on goods imported from other member states. For Augutich Investments, this means significant financial implications, as they have already purchased cement from Zambia, a COMESA member state, and now face retrospective taxation.
The situation is becoming increasingly dire, with 50 of the company’s haulage trucks stuck at the Chirundu border post, incurring demurrage charges of $10,000 per day. According to Ashriel Mugiya, the lawyer representing Augutich Investments’ CEO, Levy Mashingaidze, the government’s actions may be in direct conflict with the COMESA Treaty. "My client is in the business of importing cement from Zambia, so this statutory instrument is a direct violation of the other one which was promulgated in 2000, exempting taxes from goods manufactured from COMESA member states," Mugiya explained.
This development has raised concerns about the country’s commitment to regional integration and trade agreements, potentially having far-reaching implications for the economy and business community. As the case unfolds, it will be crucial to watch how the government responds to these challenges and whether the country can find a balance between its national interests and its regional trade obligations. The outcome of this legal battle may set a precedent for future trade disputes, making it a story worth following closely.