New duty rules sharply hit vehicle imports

THERE is a sharp drop in pre-owned vehicle imports, mostly from Japan that have been coming into the country through Beitbridge Border Post with seven cars having been imported on November 23, from a daily average of 400.

The development has been attributed to the new duty regime which has to be paid in US dollars.

On November 23 when the new duty regime became effective, sources at Malindi and Manicaland Transit sheds contracted by the Zimbabwe Revenue Authority (Zimra) to handle imported vehicles shared seven cars, the lowest ever to be imported on a single day lately.

The government, in its 2019 budget said importers of luxury vehicles will now be required to pay duty in hard currency.

A source at Malindi Transit Shed said they had receipted three car loads of six per truck.

"In short, there is little business. We are experiencing this for the first time," said the source.

"At the peak, we received 71 car loads which translated to more than 400 cars per day."

During the same period the two transit sheds failed to cope and Zimra requested the help of the army to control crowds.

Both transit sheds were deserted yesterday with only a few importers clearing vehicles brought before the new requirement.