HARARE – Finance minister Patrick Chinamasa has extended an olive branch to struggling National Oil Infrastructure Company of Zimbabwe (Noic) by temporarily exempting the state-owned enterprise from paying taxes.
“The minister of Finance hereby declares the income accruing to Noic of the prepayment facility for utilisation of the fuel pipeline in the sum of $74,8 million to be exempted from income tax at the time of receipt and shall be taxable at the time of accrual,” he said in a government gazette published last Friday.
Chinamasa added that while the company may have receipted dues of the pipeline money, Treasury expects the income tax to be honoured after the transaction was complete.
“Notwithstanding this declaration, all other receipts and accruals of Noic are not exempted from tax and remain taxable as prescribed by law,” the treasury chief said.
Noic, which was established in 2011 following the unbundling of the National Oil Company of Zimbabwe, plays a critical role in the transportation of petroleum products
into the country using the petroleum pipeline from Beira in Mozambique to Msasa depot in Harare.
Information at hand shows that over 95 percent of the fuel imported into the country comes into the country by pipeline and is picked at Msasa or Feruka where Noic does the blending.
The parastatal, which currently operates five depots in Beira, Feruka near Mutare, Beitbridge, Msasa and Mabvuku in Harare, commands over 500 million litres of storage capacity within the country.