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BreakingNews: Vehicle Import Duty In Forex

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BreakingNews: Vehicle Import Duty In Forex

Cash-strapped Zimbabwe will with effect from tomorrow collect motor-vehicle duty in foreign currency. This is contained in the 2019 budget statement being presented by finance minister.

“Honourable Members will be aware that Government has, over the years, implemented demand management measures with a view to redirect usage of the scarce foreign currency to productive industries. Such measures include adjustments to the customs duty regime and control of imported goods through the licensing system.” Said Ministry of Finance.

Finance Minister ordered that the new rule, which will cover all luxury goods.

“Despite some success, Government has, during the course of 2017 and 2018, witnessed a surge in the importation of non-productive goods, particularly motor vehicles.” He added

The general rate of duty for cars ranges between 60 and 80 percent depending on the type of vehicle.

“In order to redirect use of scarce foreign currency to the productive sectors of the economy, I propose that customs duty on motor vehicles be levied in foreign currency acceptable as legal tender, with effect from 23 November 2018.” Mthuli Ncube said.

This measure will, however, not apply on imports of commercial motor vehicles and vehicles for use by the physically challenged.

Previously importers paid for duty in local currency, making it relatively cheap to import.

In addition to duty calculated against the cost of the car,freight and insurance, importers will also have to pay surtax and value added tax.

“Furthermore, payment of customs duty in foreign currency will also apply on Selected Goods.This measure will also apply on all import VAT and Surtax.”  He said.

This measure will, however, not apply on imports of commercial motor vehicles and vehicles for use by the physically challenged.

Pardon has been a technology enthusiast his entire life and has spent the better part of last decades in information technology and security, and he writes with an aim to remove some of the "mysticism" from the cyber world. He’s the Editor at Techunzipped. Away from the keyboard, you're likely to find him playing with the latest gadgets or the latest Game.

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