Zim vehicle registration system to change

The Zimbabwe Revenue Authority wants Zimbabwe to revert to the system of a vehicle having a single registration number from first registration to final destruction instead of changing this number with each change of ownership.

The tax authority reckons that the new system allows many to evade paying taxes and makes it very difficult to keep track of cars, especially those that would have been smuggled.

Zimra has engaged the Ministry of Transport, Communications and Infrastructure Development after unearthing massive underhand dealings that could be prejudicing the State of millions of dollars.

Zimra Commissioner General Mr Gershem Pasi on Thursday said the proposal was made after realising that the current system had many loopholes and was subject to abuse by dealers and Central Vehicle Registration workers.

He said under the new suggested order, a vehicle would have one registration number for life even if it changes ownership. 

"We have since engaged the Ministry of Transport over the issue. Our proposal is that a car should have one registration number for life. This new system will help us in auditing and dealing with issues of vehicle smuggling. 

"We have noted with concern that people are abusing the current registration process by recycling the old number plates on stolen and smuggled cars. We have also agreed in principle with the police over the need to review the status quo," he said.

At the moment a car is issued with a new registration book and number plates whenever it changes ownership. 

Individuals require original Customs Clearance Certificate, original clearance documents, ie Form 49 (private import) or Form 21 (commercial import), proof of payment of duty â€" payment receipt, one year insurance and a photocopy of the same, copy of ID or passport, original proof of residence (for instance, local authority water bill, Zesa bill, bank statement or a statement from a credit store in the name of the applicant) to obtain new registration book and number plates.

Furthermore an individual needs US$160 to register a new vehicle, US$140 for trailers and US$140 for motor cycles. 

"You will note that the current vehicle registration system has many loopholes and we want to put a stop to that," he said. 

Comm Gen Pasi said if the issue was not resolved urgently, the State would continue losing a lot of revenue to some unscrupulous car dealers. 

On average a total 2 500 second hand vehicles are imported into the country through Beitbridge Border Post monthly, while a significant number comes in through other ports such as Plumtree, Kazungula, Mutare and Chirundu. Figures from Zimra indicate that out of the 2 500 at least 100 cars are registered in Beitbridge town only. 

It is understood that some of the cars will be fraudulently registered using old number plates, which are no longer in use. 

Comm Gen Pasi said his organisation had come up with an effective tracking system that sought to curb the smuggling of vehicles into the country under the Removal in Transit facility.

"We are working very hard to curb this criminal activity through the assistance of the police and a well co-ordinated tracking system. Those vehicles that pass through the country in transit to other countries will have to be acquitted at the port of exit. If that is not done we then make a follow up with the police," he said.

In written responses to The Herald inquiries last week Zimra's legal and corporate services director, Ms Florence Jambwa, said the authority had engaged Government to consider going back to the old system of vehicle registration.

Ms Jambwa said the initiative was meant to curb smuggling of vehicles as the current system was porous and prone to abuse.

"There is an initiative to engage Ministry of Transport, Communications and Infrastructural Development in order to curb smuggling of vehicles. The idea is to have a motor vehicle maintain a single number plate throughout its useful life as was done in the past. The current set-up seems porous and prone to abuse," Ms Jambwa said.

Transport, Communications and Infrastructural Development Minister Nicholas Goche did not respond to questions sent last week on the matter.

Under the repealed system motorists were only required to change ownership, but the vehicle maintained its original number plate.

However, under the current system a car to change number plates whenever it change hands since some of the vehicles are being acquired for speculative reasons.

A car can be sold many times.
The legislation to change vehicle number plates was promulgated in December 1999 and implementation was deferred to March 2005 due to logistical challenges associated with the sourcing of the number plates' material.

Statutory Instrument 427 of 1999 was only implemented on March 1, 2005, marking the introduction of the new number plates on the market.

Motorists interviewed by the Herald said authorities should look into this urgently and bring back the old effective transparent system.

"This new systems is discouraging motorists to change ownership as they just keep the car in the original owners name to avoid the hustles of changing the ownership to avoid paying the US$160 required," a motorist said adding.

The man who declined to be named said he bought his car in January last year and was safely holding on to his agreement of sale to effect change after raising the money.

Another motorist said this system also caused confusion and unnecessary paper work and a waste of resources.

"The old system was sound and easy for law enforcement authorities to trace a vehicle but now this systems allows a car to change (number) plates anytime and you cannot trace lawbreakers," he said.    

Ms Jambwa said Zimra had put in place measures to curb smuggling of vehicles into Zimbabwe.

"The Customs and Excise Act provides for the seizure and forfeiture of goods that would have been smuggled into the country. Some of the measures that that are taken by Zimra to curb smuggling of motor vehicles include post-clearance audits carried out to verify whether vehicles were properly cleared and the whistleblower's initiative, under which individuals who provide specific information that results in the recovery of revenue are entitled to 10 percent of the recovered amount, is also used to gather intelligence on smuggling," Ms Jambwa said.

Zimra, she said was working closely with security agencies and the Central Vehicle Registry to curb smuggling on roadblocks and other strategies area.