Beitbridge border post is experiencing a significant decline in volumes of imported used cars following a 20 percent increase in excise duty which took effect on November 1. “We are processing documents for less than 40 vehicles per day compared to the previous month when we would deal with over 150 cars,” said a ZIMRA official.
Investigations by The Herald indicate that before the new duty regime, ZIMRA was making over $100 000 on car imports at Manica transit shed a day, but the figure has declined to around $30 000. A modest vehicle costs between $3 000 and $4 000 at dealerships on the South African side of the border and attracts import duty of the same amount.
Before the introduction of the new regulations, zimra officials were clearing around 170 vehicle imports a day as dealers rushed to beat the November 1 deadline.
Finance and Economic Development Minister Patrick Chinamasa recently announced an increase in customs duty on single cab vehicles with a payload of more than 800kg from 20 percent to 40 percent. Buses with a 26-passenger carrying capacity and above will pay 40 percent from zero duty, while duty for double cab trucks was reviewed from 40 to 60 percent. Vehicles with an engine capacity below 1 500cc had their duty increased from 25 to 40 percent.