Zim vehicle plates overpriced – Industry

By Ndakaziva Majaka

The Confederation of Zimbabwe Industries (CZI) has called on government to reduce the cost of local vehicle number plates, pointing out that it is too high compared to regional countries.

In the body’s recommendations and expectations for the upcoming 2017 National Budget, CZI pointed out that the present pricing structure on vehicle plates was uncompetitive and “unnecessarily high”.

“Currently, Zimbabwe is charging $160 for motor vehicles and $140 for a trailer or motorcycle.

“Whilst on the other hand cost of vehicle number plates in Johannesburg, South Africa is R180.

“Using a Rand: USD exchange rate of R15=$12 this makes Zimbabwe 13,34 times more expensive than our regional counterpart,” the industry body pointed out.

CZI recommended that in his 2017 National Budget, Finance minister Patrick Chinamasa must review the price downwards, pointing out the present pricing regime was too exorbitant.

“This reduces the burden on vehicle users in-terms of vehicle number plate registration and replacement cost,” CZI said.

This comes as Transport minister Joram Gumbo recently announced that his ministry was actively looking at reviewing the plate price downwards.

“My ministry is currently reviewing the cost of the number plates with a view to making them more affordable.

“When we do that, we will still have to come back to Parliament and have everything gazetted in the interest of the public, but we are working on it right now,” Gumbo told Parliament earlier this year.

Chinamasa also recently increased customs duties and surtax on cars, a move which adds to the woes of local motorists.

Treasury’s argument was the move will reduce Zimbabwe’s widening trade deficit and protect local industries from cheap imports, with Chinamasa saying there was need for the country — which has been experiencing recurrent trade deficit in the past few years — to have confidence in locally made products as a way of reviving industry.

Chinamasa’s hike brought to 15 percent the cumulative duty increase for car imports.

Exports in the motoring industry say vehicles worth $500 million were imported in 2015, making car imports one of the single largest contributors to the import bill.

Duty paid on importation of motor vehicles into Zimbabwe is based on the Cost, Insurance and Freight value plus other incidental charges and expenses incurred in the purchase of the vehicle and its subsequent transportation up to the first point of entry into Zimbabwe.

The charges that are levied are Customs duty, Surtax and Value Added Tax (Vat).

Both customs duty and surtax are calculated on the value for duty purposes (VDP).

VAT is calculated on the total of VDP plus the calculated customs duty payable, with passenger motor vehicles more than five years being charged surtax at a rate of 35 percent. Daily News