Zimra ordered to issue Mater Dei duty rebate certificates

Published: 6 hours ago

The Bulawayo High Court has ordered the Zimbabwe Revenue Authority (Zimra) to issue duty rebate certificates for hospital equipment donated to Mater Dei Hospital, ruling that the tax authority's refusal was unlawful.

The dispute arose after Zimra denied the charitable institution rebate certificates for several consignments of donated medical equipment and consumables received from foreign entities. Mater Dei Hospital Trust, which manages the hospital in Bulawayo, filed a High Court application seeking a court order compelling Zimra to grant the rebates. The trust cited Zimra and the Commissioner of Customs and Excise as respondents.

Justice Mpokiseng Dube ruled in favour of the trust, noting that the goods in question were fully donated and that Mater Dei Trust was previously approved by the commissioner to carry out charitable work. "Through the entire pleadings and oral arguments in court, it is not disputed that the type of goods imported is approved by the 2nd respondent. The goods are fully donated. They are imported by Mater Dei Trust, an association previously approved… to be doing charitable work," Justice Dube said.

The judge found no valid legal reason to support Zimra's stance, stating that the tax authority's interpretation of the law was unfounded. "Accordingly, it is ordered that the respondents' decision to deny the applicant duty rebate certificates… be and are hereby reviewed and set aside," Justice Dube ruled.

Court papers show that the trust had submitted requests for duty rebates on four consignments between March and April 2023, but all applications were rejected. Zimra argued that Mater Dei was a "commercial entity" rather than a welfare organisation, and further contended that citing the commissioner in the proceedings was legally invalid.

Justice Dube rejected these arguments, pointing out that it was common cause that Zimra had granted similar duty rebates to the trust in the past. He noted that the commissioner's refusal in the current case was based on a simplistic assessment that Mater Dei charges for services, which did not amount to lawful reasoning. The judge emphasised that the commissioner had acted in a manner inconsistent with the principles of lawfulness, reasonableness, and fairness.

Mater Dei Hospital Trust, established in 1998 as a non-profit member of the Zimbabwe Association of Church-Related Hospitals, has consistently relied on donations to provide healthcare services. The High Court ruling now clears the way for the hospital to receive duty rebate certificates for its donated equipment, ensuring that the institution can continue to operate and serve the Bulawayo community.
- southern eye

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