All smiles for transporters. . . Duty on imported luxury buses slashed

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By Thupeyo Muleya

The Government has slashed duty on the importation of luxury buses used mainly by cross border transport operators in a move set to promote investment in the transport and logistics sector.

File picture of Scania buses
File picture of Scania buses

The reversal comes under Statutory Instrument 16 of 2017, which is effective from the 1st of January this year, as a response to a two-year lobby by the Cross-border and Transporters’ Association (CBTA).

Under the new order, only importers registered through the CBTA and approved by the Ministries of Transport and Infrastructural Development and Finance and Economic Development, stand to benefit. Duty for such luxury buses is now pegged at five percent down from 40 percent.

A new luxury bus costs between R600 000 and R1 million in South Africa. This means that approved importers would part with around R30 000 (US$2 300) and R50 000 (US$3 800) in import duty rather than R400 000 (US$30 000).

Reads part of the Statutory Instrument:

“It is hereby notified that the Minister of Finance and Economic Development (Patrick Chinamasa) has, in terms of Section 235 as read with Section 120 of the Customs and Excise Act (chapter 23:02), made the following regulations.

“1. These regulations may be cited as the Customs and Excise (suspension) (Amendment) Regulations, 2017 (no 16).

“2. The regulations shall be effective from the 1st of January, 2017 to 31st December 2017 and the Customs and Excise regulations of 2003 published in S.I 257 of 2003 are amended by the insertion after the section 9 (x) of the following — Suspension of duty on luxury buses imported by approved importers”.

Section 9 (Y) of the S.I describes approved luxury bus importer as one who is registered with the CBTA and approved under Section 2 of the new regulations.

The buses will be cleared under the tariff codes 8702.101 and 8702.901.

“The Commissioner may not grant a suspension of duty to an approved luxury bus importer on the basis of noncompliance with Section 34c of the Revenue Authority Act (Chapter 23:11),” read part of the S.I.

It is also understood that a maximum of 30 luxury buses in total shall be eligible for importation or removal from bond by the importers in terms of the new regulations.

However, the SI does not specify the carrying capacity of the said buses.

The following requirements should be submitted to the Zimbabwe Revenue Authority for eligibility to suspension of duty; a written authority from the Ministry of Transport and Infrastructure Development indicating the make, model, engine number and chassis number of the luxury bus being imported.

Further, the approved luxury bus importer’s name as authorised by the Ministry of Finance and Economic Development and a valid tax clearance certificate and proof of registration in terms of the Revenue Authority Act (Chapter 23:11).

The chief executive officer of the CBTA, Mr Alex Kautsiro, had not responded to questions e-mailed to him on Monday though he had promised to do so by yesterday afternoon. The Chronicle

  • …..forex for foreign payment

  • How will they handle the potholes?

  • Masvingo to beitbridge road yagadzirwa here.Harare to chirundu yava papi.munoda kuti aite cross border yekupi nema death trap roads enyika yedu

  • Because Ministers wants to buy their own buses tawakukuziwai, ndoo zvamunoita…

    • s

      very true. this is what we call corruption. corruption is never in the open, that is why mugabe cant see it especially that he is so sleepy nowadays because of the portion grace gave him.

      • Hhhhhhhhh

        They will use the buses for next year election

  • Zvimutemo zvenyu zveudzvinyirira vamwe hazviperi. MUGABE must fall

  • Some is now importing them. It makes business sense.

  • NOW IS JUST THEM WITH USDOLLAR OTHERS CAN’t Buy with bond

  • Haaaa hamheno ndozvavanoita ivo ndovarikuda kupinza mabhazi so mumwe atori ne 20 akamirira kupinda emari dzekubiwa futi

  • I smell a mouse here

  • what about basic commodities that

  • Lol don’t be fooled guys, it’s only because 2018 is around the corner

  • Thus a good move

  • because they want to buy buses to carry people to rallies

  • This policy is pathetic in a country with 95% unemployment. A different government would have targeted a company like AVM and relaxed duty on the importation of components they use in their assembly plants. This would create employment either temporarily or even permanently. I can’t agree more with one comment above saying that this is done simply to benefit government ministers or it’s supporters. These people do not care whatsoever about Zimbabweans. Luxury buses will not help Zimbabweans a bit if at all will can do with our chicken buses as long as basic commodities are readily accessible. You relax duty on luxuries but duty remains on medicine and food, pathetic!!

  • Why cant yu slush duty on everything …..yu buy a car of $2000 in durban and yu pay duty $2000 is that normal…..unheard of its only happening in Zimbabwe on dis planet

  • Kamba

    Its funny, at some point they said there is no duty for importing a nuclear reactor😂😂😂😂😂😂😂😂. Niw this – why nit include the common person’s needs in their schemes!!!!

  • Fox

    There is absolutely something wrong with the way the new duty system is being implemented. Government can not create legislation that gives benefits to members of a certain association. That is a violation of the principle of freedom of association. In other words government is indirectly forcing other operators to join the Cross Border Transport Association so that they benefit. There is a serious oversight about the implications on the part of government. The law should simply be crafted in a way that describes the features of buses which will qualify without mentioning that they should belong to a certain association.

  • Allaz

    they will just make the money back at roadblocks