News / Local
Duty reprieve for vehicle assembly factories
10 Mar 2023 at 00:18hrs | Views
GOVERNMENT has suspended customs duty on semi-knocked down (SKD) single and double-cab motor vehicle kits imported by approved assemblers for a period of three years in a bid to revive the local motor sector.
SKD single and double cab motor vehicle kits are assembly kits for motor vehicles being imported by an approved assembler entirely for completion of the process of assembling single and double-cab motor vehicles.
The new regulations have been made by Minister of Finance and Economic Development, Professor Mthuli Ncube in terms of section 235 of the Customs and Excise Act (Chapter 23:02).
"Customs duty is suspended for a period of three years with effect from date of publication on SKD single and double-cab motor vehicle kits imported by approved assemblers in terms of this section," reads part of the statutory instrument.
Zimbabwe's industrial base has not been spared the negative impact of economic challenges that the country has faced for close to two decades, resulting in depressed production and capacity utilisation.
The country has a Motor Industry and Development Policy 2018-2030, which seeks to attract foreign direct investment into the local automotive assembly and components manufacturing sector to 10 percent of the total FDI by 2030.
The policy aims to achieve full capacity utilisation while boosting employment levels by 70 percent during the first year of the implementation.
It proposes that Government engages banks for customer funding and tax incentives to stimulate demand for locally produced vehicles and encourage procurement of vehicles by state departments and parastatals.
Globally, countries with established motor industries have restricted the importation of second-hand vehicles to support the growth of domestic industries.
The local motor industry has historically proved to be a strategic sector in terms of meeting motor vehicle demand in the country.
For instance, Quest Motors has the capacity to produce 10 000 units per year.
Willowvale Motor Industry used to produce 20 000 units per year of brands including Mazda, Nissan, Mitsubishi and Toyota.
SKD single and double cab motor vehicle kits are assembly kits for motor vehicles being imported by an approved assembler entirely for completion of the process of assembling single and double-cab motor vehicles.
The new regulations have been made by Minister of Finance and Economic Development, Professor Mthuli Ncube in terms of section 235 of the Customs and Excise Act (Chapter 23:02).
"Customs duty is suspended for a period of three years with effect from date of publication on SKD single and double-cab motor vehicle kits imported by approved assemblers in terms of this section," reads part of the statutory instrument.
Zimbabwe's industrial base has not been spared the negative impact of economic challenges that the country has faced for close to two decades, resulting in depressed production and capacity utilisation.
The country has a Motor Industry and Development Policy 2018-2030, which seeks to attract foreign direct investment into the local automotive assembly and components manufacturing sector to 10 percent of the total FDI by 2030.
The policy aims to achieve full capacity utilisation while boosting employment levels by 70 percent during the first year of the implementation.
It proposes that Government engages banks for customer funding and tax incentives to stimulate demand for locally produced vehicles and encourage procurement of vehicles by state departments and parastatals.
Globally, countries with established motor industries have restricted the importation of second-hand vehicles to support the growth of domestic industries.
The local motor industry has historically proved to be a strategic sector in terms of meeting motor vehicle demand in the country.
For instance, Quest Motors has the capacity to produce 10 000 units per year.
Willowvale Motor Industry used to produce 20 000 units per year of brands including Mazda, Nissan, Mitsubishi and Toyota.
Source - The Chronicle
