News / National
Bulawayo Vendors Trust in discontent with Mudenda's 150% customs duty proposal
30 Jul 2017 at 04:30hrs | Views
Bulawayo Vendors Trust have expressed discontentment with the proposal of 150% customs duty to be imposed on imported vehicles made by speaker of the national house of assembly Jacob Mudednda questioning as to who will benefit from such a move.
"Jacob Mudenda (Speaker of the National Assembly) has recommended that Zimbabwe Revenue Authority (ZIMRA) should charge 150% customs duty on second hand car vehicles.
He also stipulated that like Rwanda, the informal sector must be incorporated into the mainstream economy as he suspects that it possesses $5 Billion.
This will greatly affect the informal business sector which is ran by Small or Medium enterprises (still growing and finding balance in the industry), which gain little or no income at all," the trust said through a statement.
"Questions like, who will benefit? Who will lose then arise. Who will benefit largely from this 150% customs duty imposed on informal traders? Is it the economy, the Government or the informal sector itself? The government is trying to promote the local market. However, question is, are the vehicles sold in Zimbabwe affordable to everyone, both the elite and those from the grass root level, taking into consideration the price at which the cars are sold?"
The trust also said the government should ensure that the demand and supply of goods is adequate to accommodate everyone so as to avoid having people importing second hand cars from outside the country.
"One measure that can be practiced in Zimbabwe is to that which is effectively used in South Africa. South Africa possesses no ex-Japanese cars because of the terms and conditions that are offered by companies that assembly cars. High taxes cannot be charged to an exorbitant economy, such high taxes should be charged or used in countries which have a flourishing industry," said the trust.
"Mudenda talks from a privilege position, he gets free fuel, free cars, that are imported from other countries at a minimum of $400,000. He only thinks about getting tax from the informal sector not putting in place laws that enable it to grow…Indeed, this is a sign of greed."
"Jacob Mudenda (Speaker of the National Assembly) has recommended that Zimbabwe Revenue Authority (ZIMRA) should charge 150% customs duty on second hand car vehicles.
He also stipulated that like Rwanda, the informal sector must be incorporated into the mainstream economy as he suspects that it possesses $5 Billion.
This will greatly affect the informal business sector which is ran by Small or Medium enterprises (still growing and finding balance in the industry), which gain little or no income at all," the trust said through a statement.
"Questions like, who will benefit? Who will lose then arise. Who will benefit largely from this 150% customs duty imposed on informal traders? Is it the economy, the Government or the informal sector itself? The government is trying to promote the local market. However, question is, are the vehicles sold in Zimbabwe affordable to everyone, both the elite and those from the grass root level, taking into consideration the price at which the cars are sold?"
The trust also said the government should ensure that the demand and supply of goods is adequate to accommodate everyone so as to avoid having people importing second hand cars from outside the country.
"One measure that can be practiced in Zimbabwe is to that which is effectively used in South Africa. South Africa possesses no ex-Japanese cars because of the terms and conditions that are offered by companies that assembly cars. High taxes cannot be charged to an exorbitant economy, such high taxes should be charged or used in countries which have a flourishing industry," said the trust.
"Mudenda talks from a privilege position, he gets free fuel, free cars, that are imported from other countries at a minimum of $400,000. He only thinks about getting tax from the informal sector not putting in place laws that enable it to grow…Indeed, this is a sign of greed."
Source - Byo24News
