Zimra hikes vehicle import duty

By Thupeyo Muleya

The Zimbabwe Revenue Authority (Zimra) has, with effect from Wednesday last week, unilaterally increased import duty on used vehicles. The new development has seen duty for a wide section of vehicles increasing by between $200 and $400.

It is understood that where an importer used to spend an average $6,000 on their new vehicle, they now need an extra $400 to meet all the requirements.

Zimra’s Director of Corporate and Legal Affairs, Florence Jambwa, had not respond to e-mailed questions by end of business yesterday.

A Zimra official in Beitbridge said the main objective of the changes was to ensure that all motor vehicle importers pay a standard amount in duty for various vehicles.

“We’re now calculating value of duty based on a national catalogue which has since been dispatched to all borders.

“In previous years, individual stations were using varying values for duty purposes (VDP) but now we’re now calculating duty based on one standard VDP.

“For instance, we had the same type of vehicles paying different duty at different ports of entry, but under the new regime the duty is now uniform.”

He said the percentages used to calculate import duty had not changed.

Under the current import duty schedule, buses with a carrying capacity of 26 passengers and above pay 40 percent of the value of the vehicle, double cab trucks 60 percent, and passenger motor vehicles of engine capacity below 1,500cc attract duty of 40 percent.

Vehicles with engines above 1,500cc are charged 86percent duty inclusive of VAT and Surtax.

Import duty on vehicles is calculated based on year of manufacture and fuel transmission (automatic or manual). The new development has seen the tax authorities processing fewer vehicles at the Manica Transit shed in Beitbridge.

In separate interviews, car dealers and clearing agents lambasted Zimra for imposing the new values without prior notifications or consultations.

Investigations by The Chronicle indicate that importers of cars such as Toyota Corolla Bubble shapes, Honda Fit, Toyota Corolla old shape, Toyota Raum which are on high demand were the worst affected by the new regulations.

A majority of Zimbabweans and small companies cannot afford new cars and they have been relying on used cars mainly from Japan, the United Kingdom and to some extent the United States of America. The Chronicle