Car import ban costs Zimra $3bn

By Rex Mphisa

Zimbabwe lost more than $3 billion in potential revenue in April alone following its ban on imports of vehicles that are older than 10 years.

File picture of cars being delivered

The number of vehicles imported has dropped steeply by between 2 000 and 3 000 per month. The drop also has ripple effects in the motor and downstream industries, with hundreds of Zimbabweans rendered jobless.

On April 2 this year, Zimbabwe effected Statutory Instrument 89/2021 which banned all imports of mostly pre-owned cars that are 10 years and older.

Figures on car imports dropped steeply from 4 776,4 153, 5 100 in January, February and March, respectively, to 2 034 in April when the new law came into effect.

“In January, February and March 4776, 4153 and 5 100 cars, respectively, were imported into the country through Beitbridge. Revenue collected from those imports was $805 603 213,40 in January, $3 140 785 433,30 in February and $4 062 889 835,52 in March,” the Zimbabwe Revenue Authority said in response to questions from NewsDay.

“In April, $1 814 664 161,79 was collected,” said Zimra spokesman Francis Chimanda.

“Statutory Instrument 89 of 2021 was promulgated on April 2 2021 and the number of vehicles imported in April as at 26 April 2021 is 2 034 down from 5 100 in March 2021,” he said.

The difference is around $3 billion and at that rate, the country would have potentially lost $36 billion by December.

The Ministry of Industry and Commerce said it had become necessary to ban cars 10 years old and above to protect the local industry, which critics say is non-existent. Industry officials, during a recent visit to Beitbridge, had no idea what the local car manufacturing industry was producing.

The decision has not been popular with many people who feel the cars filled the gap which local car manufacturers cannot not fill.

The vehicle imports had also created employment for shipping agents and drivers and will likely hit new business for insurance companies.

The officials were in Beitbridge to assist cross-border traders launch self-help schemes following effects of COVID-19 work recess that has left thousands of people struggling.

Apart from South Africa, with several car manufacturing plants, most countries in Southern Africa rely heavily on imports of Japanese pre-owned cars. NewsDay

Francis ChimandaMinistry of Industry and CommerceZimbabwe Revenue Authority
Comments (226)
Add Comment
  • Eviasy Moyo

    Regai vachingomora havo isu tikutopanda zvedu #demloot

  • Garikai Liston Matsika

    Can you also quantify the savings in terms of the environment. Africa is being used as a dumping for waste disposal at a huge cost to the environment. A good move

    • Godserves Mangena

      Garikai Liston Matsika do you have capacity to manufacture yours ? bcoz new ones are expensive most people can’t afford unless government thiefs

    • Hillary Magejo

      Can you compare the damage done by a skolokolo with an old engine that has worn out rings, no catalytic convertor to sieve toxic exhaust fumes and muffle noisy sounds with a recent ex jap which looks like its coming straight out of the showroom?

    • Lloyd Machingauta

      Garikai Liston Matsika the damage will be worse because we will keep out mazda B18s even if they are smoking like hel

    • Garikai Liston Matsika

      Lloyd Machingauta Climate change is real. All of these cars we are clamouring for will be obsolete in 19 years as electric cars become e norm.We can continue on this path and become a dumpsite. At times hard decisions have to be made.

    • Lloyd Machingauta

      Garikai Liston if the economy is stable no one will go for scrappy ex japan. Unless you are saying that let the cars be driven by the elite only. Those corrupt goverment officials and a few privileged business people.

  • Tinashe Mufambi

    Saka kana nyika yaikwanisa kuiita 36 billion per year budget yenyika iri 10billion in imwe mari yaiienda kupi

  • Eviasy Moyo

    Regai vachingomora havo isu tikutopanda zvedu #demloot

    • Jephreys Vuriga

      Chrispen Munyengeterwa Muzenda How was it saved? How can you save something that is not yours

    • Midze Pat

      Jephreys Vuriga maths dzinodiwa Chokwadi.
      Haukohwe kana usina kurima. Simples .

    • Jephreys Vuriga

      Amheno kuti vanhu vano zviwanepi kuti if I don’t use my US 100 somehow it becomes the country’s property

    • Kuda Mlambo

      Chrispen Munyengeterwa Muzenda is it our money or it is the property of the united statesof America

  • Moses Muchengi

    Zimbabwe does not have the capacity to manufacture enough cars for it’s populace plus the price for local cars is exorbitant

  • Moloko Leo Modiba

    It’s strategic to benefiting zanu they don’t just do it it means they will import the same cars and you will buy from them and gues what they will avoid paying duty

  • Moyo Njabulo

    They will recover &#38#128512&#38#128512

  • Garikai Liston Matsika

    Can you also quantify the savings in terms of the environment. Africa is being used as a dumping for waste disposal at a huge cost to the environment. A good move

    • Godserves Mangena

      Garikai Liston Matsika do you have capacity to manufacture yours ? bcoz new ones are expensive most people can’t afford unless government thiefs

    • Mkhululi Ndlovu

      Garikai Liston Matsika what damage are you talking about? Do you mean the damage caused by illegal mining , reckless mining by Chinese firms powered by your government, destruction of protected wild life lands ?

    • Hillary Magejo

      Can you compare the damage done by a skolokolo with an old engine that has worn out rings, no catalytic convertor to sieve toxic exhaust fumes and muffle noisy sounds with a recent ex jap which looks like its coming straight out of the showroom?

    • Lloyd Machingauta

      Garikai Liston Matsika the damage will be worse because we will keep out mazda B18s even if they are smoking like hel

    • Garikai Liston Matsika

      Lloyd Machingauta Climate change is real. All of these cars we are clamouring for will be obsolete in 19 years as electric cars become e norm.We can continue on this path and become a dumpsite. At times hard decisions have to be made.

    • Lloyd Machingauta

      Garikai Liston if the economy is stable no one will go for scrappy ex japan. Unless you are saying that let the cars be driven by the elite only. Those corrupt goverment officials and a few privileged business people.

  • Tinashe Mufambi

    Saka kana nyika yaikwanisa kuiita 36 billion per year budget yenyika iri 10billion in imwe mari yaiienda kupi

  • Eviasy Moyo

    Regai vachingomora havo isu tikutopanda zvedu #demloot

    • Jephreys Vuriga

      Chrispen Munyengeterwa Muzenda How was it saved? How can you save something that is not yours

    • Midze Pat

      Jephreys Vuriga maths dzinodiwa Chokwadi.
      Haukohwe kana usina kurima. Simples .

    • Jephreys Vuriga

      Amheno kuti vanhu vano zviwanepi kuti if I don’t use my US 100 somehow it becomes the country’s property

    • Chrispen Munyengeterwa Muzenda

      Jephreys Vuriga we hustle in Zimbabwe to get foreign currency, only to spend it in Foreign nations because if our appetite for foreign goods. We should circulate our money within our country that’s why we always have a balance of payments deficit. However our Government should create a conducive environment for investments. Why can’t Japan open those car sales garages in Zimbabwe and pay tax other than opening them in South Africa.

    • Kuda Mlambo

      Chrispen Munyengeterwa Muzenda is it our money or it is the property of the united statesof America

    • Davison Mudombo

      Chrispen Munyengeterwa Zim gvnt must allow car dealers to establish car sales in our country ,that is if mangudya gives them forex after after depositing their monies .it’s the failure of those in power to attract investors

    • Jephreys Vuriga

      Chrispen Munyengeterwa Muzenda Our Customs rules do not provide for inland trading (Coastal Trading) before you can offer your product for sale you have to pay duty 1st, Whereas South Africa allowed for bonded goods to be offered for sale. We spend in foreign nations because we get value for our money there. Trust me you can do a lot with $1000 in foreign lands that you can do in Zimbabwe. Our government sets the tone for expensive goods through excessive taxation. You won’t believe the amount of tax that is factored into goods as cost way above 50%. If you make more money in Zimbabwe the rate of income tax goes up as well our maximum income tax is 40% you will also pay taxes on your vehicle as well. Just buying something sets you off 2% and that’s before VAT. If you earn $3000 there is a good chance that 2000 of it will end up in government coffers through various forms of taxation

    • Itayi Tione

      Chrispen Munyengeterwa Muzenda is that the induction you get at that Chitepo school of ediots

  • Moses Muchengi

    Zimbabwe does not have the capacity to manufacture enough cars for it’s populace plus the price for local cars is exorbitant

  • Moloko Leo Modiba

    It’s strategic to benefiting zanu they don’t just do it it means they will import the same cars and you will buy from them and gues what they will avoid paying duty

    • Moyo Njabulo

      Jimmy Jimmy on a serious note, beforea policy is implemented,one would seek to know the downside part of taking ad implementing the policy.am not sure if anything was done.and here we’re,it’s got a negative impact on the fiscus

  • Ish Mudere

    Parikutotsvagwa imwe way yekutorera vanhu mari to cover up that loss

  • Garikai Liston Matsika

    Can you also quantify the savings in terms of the environment. Africa is being used as a dumping for waste disposal at a huge cost to the environment. A good move

    • Godserves Mangena

      Garikai Liston Matsika do you have capacity to manufacture yours ? bcoz new ones are expensive most people can’t afford unless government thiefs

    • Mkhululi Ndlovu

      Garikai Liston Matsika what damage are you talking about? Do you mean the damage caused by illegal mining , reckless mining by Chinese firms powered by your government, destruction of protected wild life lands ?

    • Hillary Magejo

      Can you compare the damage done by a skolokolo with an old engine that has worn out rings, no catalytic convertor to sieve toxic exhaust fumes and muffle noisy sounds with a recent ex jap which looks like its coming straight out of the showroom?

    • Lloyd Machingauta

      Garikai Liston Matsika the damage will be worse because we will keep out mazda B18s even if they are smoking like hel

    • Garikai Liston Matsika

      Lloyd Machingauta Climate change is real. All of these cars we are clamouring for will be obsolete in 19 years as electric cars become e norm.We can continue on this path and become a dumpsite. At times hard decisions have to be made.

    • Lloyd Machingauta

      Garikai Liston if the economy is stable no one will go for scrappy ex japan. Unless you are saying that let the cars be driven by the elite only. Those corrupt goverment officials and a few privileged business people.

  • Tinashe Mufambi

    Saka kana nyika yaikwanisa kuiita 36 billion per year budget yenyika iri 10billion in imwe mari yaiienda kupi

  • Eviasy Moyo

    Regai vachingomora havo isu tikutopanda zvedu #demloot

    • Jephreys Vuriga

      Chrispen Munyengeterwa Muzenda How was it saved? How can you save something that is not yours

    • Midze Pat

      Jephreys Vuriga maths dzinodiwa Chokwadi.
      Haukohwe kana usina kurima. Simples .

    • Jephreys Vuriga

      Amheno kuti vanhu vano zviwanepi kuti if I don’t use my US 100 somehow it becomes the country’s property

    • Chrispen Munyengeterwa Muzenda

      Jephreys Vuriga we hustle in Zimbabwe to get foreign currency, only to spend it in Foreign nations because if our appetite for foreign goods. We should circulate our money within our country that’s why we always have a balance of payments deficit. However our Government should create a conducive environment for investments. Why can’t Japan open those car sales garages in Zimbabwe and pay tax other than opening them in South Africa.

    • Kuda Mlambo

      Chrispen Munyengeterwa Muzenda is it our money or it is the property of the united statesof America

    • Davison Mudombo

      Chrispen Munyengeterwa Zim gvnt must allow car dealers to establish car sales in our country ,that is if mangudya gives them forex after after depositing their monies .it’s the failure of those in power to attract investors

    • Jephreys Vuriga

      Chrispen Munyengeterwa Muzenda Our Customs rules do not provide for inland trading (Coastal Trading) before you can offer your product for sale you have to pay duty 1st, Whereas South Africa allowed for bonded goods to be offered for sale. We spend in foreign nations because we get value for our money there. Trust me you can do a lot with $1000 in foreign lands that you can do in Zimbabwe. Our government sets the tone for expensive goods through excessive taxation. You won’t believe the amount of tax that is factored into goods as cost way above 50%. If you make more money in Zimbabwe the rate of income tax goes up as well our maximum income tax is 40% you will also pay taxes on your vehicle as well. Just buying something sets you off 2% and that’s before VAT. If you earn $3000 there is a good chance that 2000 of it will end up in government coffers through various forms of taxation

    • Itayi Tione

      Chrispen Munyengeterwa Muzenda is that the induction you get at that Chitepo school of ediots

  • Moses Muchengi

    Zimbabwe does not have the capacity to manufacture enough cars for it’s populace plus the price for local cars is exorbitant

  • Moloko Leo Modiba

    It’s strategic to benefiting zanu they don’t just do it it means they will import the same cars and you will buy from them and gues what they will avoid paying duty

    • Moyo Njabulo

      Jimmy Jimmy on a serious note, beforea policy is implemented,one would seek to know the downside part of taking ad implementing the policy.am not sure if anything was done.and here we’re,it’s got a negative impact on the fiscus

  • Ish Mudere

    Parikutotsvagwa imwe way yekutorera vanhu mari to cover up that loss

  • Jimmy Jimmy

    Mari yese iyo inokwanisa kuhoresa munhu wese asina kana kuenda kubasa zim yese

  • Garikai Liston Matsika

    Can you also quantify the savings in terms of the environment. Africa is being used as a dumping for waste disposal at a huge cost to the environment. A good move

    • Godserves Mangena

      Garikai Liston Matsika do you have capacity to manufacture yours ? bcoz new ones are expensive most people can’t afford unless government thiefs

    • Mkhululi Ndlovu

      Garikai Liston Matsika what damage are you talking about? Do you mean the damage caused by illegal mining , reckless mining by Chinese firms powered by your government, destruction of protected wild life lands ?

    • Hillary Magejo

      Can you compare the damage done by a skolokolo with an old engine that has worn out rings, no catalytic convertor to sieve toxic exhaust fumes and muffle noisy sounds with a recent ex jap which looks like its coming straight out of the showroom?

    • Lloyd Machingauta

      Garikai Liston Matsika the damage will be worse because we will keep out mazda B18s even if they are smoking like hel

    • Garikai Liston Matsika

      Lloyd Machingauta Climate change is real. All of these cars we are clamouring for will be obsolete in 19 years as electric cars become e norm.We can continue on this path and become a dumpsite. At times hard decisions have to be made.

    • Lloyd Machingauta

      Garikai Liston if the economy is stable no one will go for scrappy ex japan. Unless you are saying that let the cars be driven by the elite only. Those corrupt goverment officials and a few privileged business people.

  • Tinashe Mufambi

    Saka kana nyika yaikwanisa kuiita 36 billion per year budget yenyika iri 10billion in imwe mari yaiienda kupi

  • Eviasy Moyo

    Regai vachingomora havo isu tikutopanda zvedu #demloot

    • Jephreys Vuriga

      Chrispen Munyengeterwa Muzenda How was it saved? How can you save something that is not yours

    • Midze Pat

      Jephreys Vuriga maths dzinodiwa Chokwadi.
      Haukohwe kana usina kurima. Simples .

    • Jephreys Vuriga

      Amheno kuti vanhu vano zviwanepi kuti if I don’t use my US 100 somehow it becomes the country’s property

    • Chrispen Munyengeterwa Muzenda

      Jephreys Vuriga we hustle in Zimbabwe to get foreign currency, only to spend it in Foreign nations because if our appetite for foreign goods. We should circulate our money within our country that’s why we always have a balance of payments deficit. However our Government should create a conducive environment for investments. Why can’t Japan open those car sales garages in Zimbabwe and pay tax other than opening them in South Africa.

    • Kuda Mlambo

      Chrispen Munyengeterwa Muzenda is it our money or it is the property of the united statesof America

    • Davison Mudombo

      Chrispen Munyengeterwa Zim gvnt must allow car dealers to establish car sales in our country ,that is if mangudya gives them forex after after depositing their monies .it’s the failure of those in power to attract investors

    • Jephreys Vuriga

      Chrispen Munyengeterwa Muzenda Our Customs rules do not provide for inland trading (Coastal Trading) before you can offer your product for sale you have to pay duty 1st, Whereas South Africa allowed for bonded goods to be offered for sale. We spend in foreign nations because we get value for our money there. Trust me you can do a lot with $1000 in foreign lands that you can do in Zimbabwe. Our government sets the tone for expensive goods through excessive taxation. You won’t believe the amount of tax that is factored into goods as cost way above 50%. If you make more money in Zimbabwe the rate of income tax goes up as well our maximum income tax is 40% you will also pay taxes on your vehicle as well. Just buying something sets you off 2% and that’s before VAT. If you earn $3000 there is a good chance that 2000 of it will end up in government coffers through various forms of taxation

    • Itayi Tione

      Chrispen Munyengeterwa Muzenda is that the induction you get at that Chitepo school of ediots

  • Moses Muchengi

    Zimbabwe does not have the capacity to manufacture enough cars for it’s populace plus the price for local cars is exorbitant

  • Moloko Leo Modiba

    It’s strategic to benefiting zanu they don’t just do it it means they will import the same cars and you will buy from them and gues what they will avoid paying duty

  • Handsomem Mubhonderi

    That is what happens when a government is myopic. There isn’t anyone who can advise the leadership because the so called advisors have no clues

    • Moyo Njabulo

      Jimmy Jimmy on a serious note, beforea policy is implemented,one would seek to know the downside part of taking ad implementing the policy.am not sure if anything was done.and here we’re,it’s got a negative impact on the fiscus

  • Zondai Kamoto

    Vanomama chete isu hatife nekushaya mota todya muriwo

  • Ish Mudere

    Parikutotsvagwa imwe way yekutorera vanhu mari to cover up that loss

  • Jimmy Jimmy

    Mari yese iyo inokwanisa kuhoresa munhu wese asina kana kuenda kubasa zim yese

  • Garikai Liston Matsika

    Can you also quantify the savings in terms of the environment. Africa is being used as a dumping for waste disposal at a huge cost to the environment. A good move

    • Godserves Mangena

      Garikai Liston Matsika do you have capacity to manufacture yours ? bcoz new ones are expensive most people can’t afford unless government thiefs

    • Mkhululi Ndlovu

      Garikai Liston Matsika what damage are you talking about? Do you mean the damage caused by illegal mining , reckless mining by Chinese firms powered by your government, destruction of protected wild life lands ?

    • Hillary Magejo

      Can you compare the damage done by a skolokolo with an old engine that has worn out rings, no catalytic convertor to sieve toxic exhaust fumes and muffle noisy sounds with a recent ex jap which looks like its coming straight out of the showroom?

    • Lloyd Machingauta

      Garikai Liston Matsika the damage will be worse because we will keep out mazda B18s even if they are smoking like hel

    • Garikai Liston Matsika

      Lloyd Machingauta Climate change is real. All of these cars we are clamouring for will be obsolete in 19 years as electric cars become e norm.We can continue on this path and become a dumpsite. At times hard decisions have to be made.

    • Lloyd Machingauta

      Garikai Liston if the economy is stable no one will go for scrappy ex japan. Unless you are saying that let the cars be driven by the elite only. Those corrupt goverment officials and a few privileged business people.

  • Tinashe Mufambi

    Saka kana nyika yaikwanisa kuiita 36 billion per year budget yenyika iri 10billion in imwe mari yaiienda kupi

  • Eviasy Moyo

    Regai vachingomora havo isu tikutopanda zvedu #demloot

    • Jephreys Vuriga

      Chrispen Munyengeterwa Muzenda How was it saved? How can you save something that is not yours

    • Midze Pat

      Jephreys Vuriga maths dzinodiwa Chokwadi.
      Haukohwe kana usina kurima. Simples .

    • Jephreys Vuriga

      Amheno kuti vanhu vano zviwanepi kuti if I don’t use my US 100 somehow it becomes the country’s property

    • Chrispen Munyengeterwa Muzenda

      Jephreys Vuriga we hustle in Zimbabwe to get foreign currency, only to spend it in Foreign nations because if our appetite for foreign goods. We should circulate our money within our country that’s why we always have a balance of payments deficit. However our Government should create a conducive environment for investments. Why can’t Japan open those car sales garages in Zimbabwe and pay tax other than opening them in South Africa.

    • Kuda Mlambo

      Chrispen Munyengeterwa Muzenda is it our money or it is the property of the united statesof America

    • Davison Mudombo

      Chrispen Munyengeterwa Zim gvnt must allow car dealers to establish car sales in our country ,that is if mangudya gives them forex after after depositing their monies .it’s the failure of those in power to attract investors

    • Jephreys Vuriga

      Chrispen Munyengeterwa Muzenda Our Customs rules do not provide for inland trading (Coastal Trading) before you can offer your product for sale you have to pay duty 1st, Whereas South Africa allowed for bonded goods to be offered for sale. We spend in foreign nations because we get value for our money there. Trust me you can do a lot with $1000 in foreign lands that you can do in Zimbabwe. Our government sets the tone for expensive goods through excessive taxation. You won’t believe the amount of tax that is factored into goods as cost way above 50%. If you make more money in Zimbabwe the rate of income tax goes up as well our maximum income tax is 40% you will also pay taxes on your vehicle as well. Just buying something sets you off 2% and that’s before VAT. If you earn $3000 there is a good chance that 2000 of it will end up in government coffers through various forms of taxation

    • Itayi Tione

      Chrispen Munyengeterwa Muzenda is that the induction you get at that Chitepo school of ediots

  • Moses Muchengi

    Zimbabwe does not have the capacity to manufacture enough cars for it’s populace plus the price for local cars is exorbitant

  • Moloko Leo Modiba

    It’s strategic to benefiting zanu they don’t just do it it means they will import the same cars and you will buy from them and gues what they will avoid paying duty

  • Handsomem Mubhonderi

    That is what happens when a government is myopic. There isn’t anyone who can advise the leadership because the so called advisors have no clues

    • Moyo Njabulo

      Jimmy Jimmy on a serious note, beforea policy is implemented,one would seek to know the downside part of taking ad implementing the policy.am not sure if anything was done.and here we’re,it’s got a negative impact on the fiscus

  • Zondai Kamoto

    Vanomama chete isu hatife nekushaya mota todya muriwo

  • Ish Mudere

    Parikutotsvagwa imwe way yekutorera vanhu mari to cover up that loss

  • Jimmy Jimmy

    Mari yese iyo inokwanisa kuhoresa munhu wese asina kana kuenda kubasa zim yese

  • Handsomem Mubhonderi

    That is what happens when a government is myopic. There isn’t anyone who can advise the leadership because the so called advisors have no clues

  • Zondai Kamoto

    Vanomama chete isu hatife nekushaya mota todya muriwo

  • Ish Mudere

    Parikutotsvagwa imwe way yekutorera vanhu mari to cover up that loss

  • Jimmy Jimmy

    Mari yese iyo inokwanisa kuhoresa munhu wese asina kana kuenda kubasa zim yese

  • Sibanda Mqoe

    It’s gud for them thy don’t hv roads

  • Handsomem Mubhonderi

    That is what happens when a government is myopic. There isn’t anyone who can advise the leadership because the so called advisors have no clues

  • Zondai Kamoto

    Vanomama chete isu hatife nekushaya mota todya muriwo

  • Sibanda Mqoe

    It’s gud for them thy don’t hv roads

  • Sibanda Mqoe

    It’s gud for them thy don’t hv roads

  • Sibanda Mqoe

    It’s gud for them thy don’t hv roads