Additional 20% duty on imported cars comes into effect

The government has with effect from today started collecting an additional 20 percent duty on imported vehicles.

The proposed 20 percent duty increase on imported cars has become a reality as fiscal authorities seek to improve revenue inflows and facilitate the revival of the local automobile industry.

Zimbabwe Revenue Authority (Zimra) Commissioner General Geshom Pasi  confirmed that the new recently increased duty on vehicle imports is now being collected at all ports of entry across the country.

"Indeed we have started collecting the additional duty for the benefit of the local industry," said Mr Pasi.

In the 2014 mid-term review statement, Finance and Economic Development Minister Patrick Chinamasa said the duty increase was proposed after the realisation that motor vehicle imports had contributed 10 percent of the country's estimated $1.8 billion import bill in the first half.

Under the new duty structure, the government has increased customs duty on a single cab of more than 800kgs from 20 percent to 40 percent.

Import duties for buses with a carrying capacity of more than 26 passengers have also been increased to 40 percent from zero percent, while that of double cab trucks has been adjusted upwards to 60 percent from 40 percent.