News / National
Zimra backtracks on reverting to the old number plates
23 Jan 2014 at 01:24hrs | Views
The Zimbabwe Revenue Authority has abandoned its lobby for the country to revert to the old system of single registration number for vehicles from the first time to final destruction.
Under the old system, only ownership was changed while the car maintained the same registration number while the new system requires the registration number to be changed with each change of ownership.
The new system was introduced in March 1, 2005. Zimra had in 2012 reckoned that the new system allowed people to evade paying taxes making it difficult to keep track of cars, especially those that would have been smuggled. The tax authority has, however, failed to explain its decision.
In a written response, Zimra's director legal and corporate services Mrs Florence Jambwa, said the authority had made the decision after a meeting with the Central Vehicle Registration.
"Indeed we held consultative meetings with the Central Vehicle Registration in 2012 and we agreed that we continue to use the new system. In our discussions we got clarity on the advantages of the new system, which outweigh the perceived disadvantages," Mrs Jambwa said.
In 2012, Zimra said it had engaged the ministry of Transport, Communications and Infrastructure Development to revert to the old number plate system after unearthing massive underhand dealings that could be prejudicing the State of millions of dollars.
Zimra said its proposal was made after realising that the current system had many loopholes and was subject to abuse by dealers and CVR workers.
The authority had said if the issue was not resolved urgently, the State would continue losing a lot of revenue to some unscrupulous car dealers.
The authority noted with concern that people were abusing the current registration process by recycling the old number plates on stolen and smuggled cars.
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, i.e. Form 49 (private import) or Form 21 (commercial import), proof of payment of duty - 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 $160 to register a new vehicle, $140 for trailers and $140 for motor cycles. 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.
Under the old system, only ownership was changed while the car maintained the same registration number while the new system requires the registration number to be changed with each change of ownership.
The new system was introduced in March 1, 2005. Zimra had in 2012 reckoned that the new system allowed people to evade paying taxes making it difficult to keep track of cars, especially those that would have been smuggled. The tax authority has, however, failed to explain its decision.
In a written response, Zimra's director legal and corporate services Mrs Florence Jambwa, said the authority had made the decision after a meeting with the Central Vehicle Registration.
"Indeed we held consultative meetings with the Central Vehicle Registration in 2012 and we agreed that we continue to use the new system. In our discussions we got clarity on the advantages of the new system, which outweigh the perceived disadvantages," Mrs Jambwa said.
Zimra said its proposal was made after realising that the current system had many loopholes and was subject to abuse by dealers and CVR workers.
The authority had said if the issue was not resolved urgently, the State would continue losing a lot of revenue to some unscrupulous car dealers.
The authority noted with concern that people were abusing the current registration process by recycling the old number plates on stolen and smuggled cars.
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, i.e. Form 49 (private import) or Form 21 (commercial import), proof of payment of duty - 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 $160 to register a new vehicle, $140 for trailers and $140 for motor cycles. 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.
Source - herald
