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Zimbabwe exempts immigrants from ban on importing older vehicles
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Immigrants are now exempt from the Government's ban on importing vehicles older than 10 years, allowing qualifying immigrants to bring in cars duty-free, according to new regulations under Statutory Instrument 172 of 2024. The regulations were gazetted yesterday by Industry and Commerce Minister Mangaliso Ndlovu.
Earlier this year, in March 2024, the Government imposed a ban on the importation of vehicles over 10 years from the date of manufacture, requiring those importing such vehicles to cover the costs of re-export. However, in July 2024, Statutory Instrument 111 of 2024 introduced exemptions for inherited vehicles, cars of returning citizens, and diplomats. The new regulations now extend this exemption to immigrants.
The Zimbabwe Revenue Authority (Zimra) has clarified that qualifying vehicles will be exempt from customs duty, but will still be subject to value-added tax (VAT). Vehicles valued at no more than US$40,000 will incur VAT, while those exceeding this value will also attract duty on the excess amount.
Under the new rules, immigrants can import only one vehicle for personal use, which must not be intended for commercial purposes. The vehicle must have been owned by the immigrant for at least six months prior to their arrival in Zimbabwe, and it must be fully paid for and physically present before the time of arrival.
Zimra's guidelines further state that the vehicle's value cannot exceed US$40,000, and immigrants must provide a declaration that the car will be used solely for personal purposes within Zimbabwe. Additionally, the vehicle cannot be sold or transferred for 24 months unless approved by Zimra, and if the car is sold or disposed of within this period, the previously exempted duty must be paid.
"The immigrant shall not sell or dispose of the vehicle in any manner within 24 months after the date of being granted such a rebate unless agreed by the Commissioner-General of Zimra," Zimra noted. Any violations of the conditions may result in the vehicle's seizure or legal action under the Customs and Excise Act.
The new regulations aim to provide immigrants with greater flexibility while ensuring the conditions for tax exemptions are adhered to, safeguarding against misuse or commercial exploitation.
Earlier this year, in March 2024, the Government imposed a ban on the importation of vehicles over 10 years from the date of manufacture, requiring those importing such vehicles to cover the costs of re-export. However, in July 2024, Statutory Instrument 111 of 2024 introduced exemptions for inherited vehicles, cars of returning citizens, and diplomats. The new regulations now extend this exemption to immigrants.
The Zimbabwe Revenue Authority (Zimra) has clarified that qualifying vehicles will be exempt from customs duty, but will still be subject to value-added tax (VAT). Vehicles valued at no more than US$40,000 will incur VAT, while those exceeding this value will also attract duty on the excess amount.
Under the new rules, immigrants can import only one vehicle for personal use, which must not be intended for commercial purposes. The vehicle must have been owned by the immigrant for at least six months prior to their arrival in Zimbabwe, and it must be fully paid for and physically present before the time of arrival.
Zimra's guidelines further state that the vehicle's value cannot exceed US$40,000, and immigrants must provide a declaration that the car will be used solely for personal purposes within Zimbabwe. Additionally, the vehicle cannot be sold or transferred for 24 months unless approved by Zimra, and if the car is sold or disposed of within this period, the previously exempted duty must be paid.
"The immigrant shall not sell or dispose of the vehicle in any manner within 24 months after the date of being granted such a rebate unless agreed by the Commissioner-General of Zimra," Zimra noted. Any violations of the conditions may result in the vehicle's seizure or legal action under the Customs and Excise Act.
The new regulations aim to provide immigrants with greater flexibility while ensuring the conditions for tax exemptions are adhered to, safeguarding against misuse or commercial exploitation.
Source - The Herald
