Zimbabwe – Sharp Decline in Vehicle Imports

November 20, 2014 — Leave a comment

carsBeitbridge 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.

Customs duty for vehicles with engine capacity above 1500cc remains at 86 percent, inclusive of VAT and surtax. The new development has seen the Zimbabwe Revenue Authority processing fewer vehicles at Manica transit shed in Beitbridge. Vehicle dealers at the South African border said they were struggling to sell five cars a day. Major car dealers include Quest Royal, Wright Cars, Car Cade, Murree Motors, Noble Motors and KDG. Cars with small engines such as the Nissan March, Honda Fit, Toyota Vitz, Toyota Corolla, Toyota Raum and FunCargo were on high demand before the new duty regime. Source: The Herald
Advertisements

No Comments

Be the first to start the conversation!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s