News / National
Zimbabwe suspends duty on bus, lorry tyre imports
23 Oct 2024 at 07:48hrs | Views
The Zimbabwean government has suspended import duty on commercial tyres for buses and lorries in a bid to strengthen the public transport system. The move, announced by Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, was outlined in a Statutory Instrument published in the Government Gazette last Friday, in line with the Customs and Excise Act.
The suspension of duty will apply for a period of two years and aims to facilitate the importation of at least 1.5 million tyres during this period.
"For a period of two years, with effect from date of publication, customs duty is suspended on commercial tyres imported by approved importers," the notice read.
The regulation defines "approved tyre importer" as an entity authorised and licensed by the Minister of Industry and Commerce to import commercial tyres under these specific conditions. The suspension is intended for tyres used exclusively by buses and lorries, a key aspect of ensuring the tyres support commercial transportation needs.
However, strict compliance measures are in place. The Zimbabwe Revenue Authority (ZIMRA) Commissioner has the authority to refuse a duty suspension request from any importer found in violation of section 34C of the Revenue Authority Act. Moreover, the importer must hold a valid licence issued by the Minister of Industry and Commerce to benefit from this policy.
Approved tyre importers are required to submit a signed declaration along with the relevant customs documents, affirming that the imported tyres will be used exclusively on commercial buses and lorries.
Professor Ncube also announced that commercial tyres imported under this policy would be subject to a reduced duty rate of 15%.
The duty suspension is expected to provide significant relief to the transport sector, which has been struggling to recover from the financial losses incurred during the COVID-19 pandemic. During that time, movement restrictions aimed at curbing the spread of the virus significantly reduced transport operators' revenue.
By lowering the costs of essential imports like tyres, the government hopes to boost the efficiency and sustainability of Zimbabwe's public transport network, aiding its recovery and long-term growth.
The suspension of duty will apply for a period of two years and aims to facilitate the importation of at least 1.5 million tyres during this period.
"For a period of two years, with effect from date of publication, customs duty is suspended on commercial tyres imported by approved importers," the notice read.
The regulation defines "approved tyre importer" as an entity authorised and licensed by the Minister of Industry and Commerce to import commercial tyres under these specific conditions. The suspension is intended for tyres used exclusively by buses and lorries, a key aspect of ensuring the tyres support commercial transportation needs.
Approved tyre importers are required to submit a signed declaration along with the relevant customs documents, affirming that the imported tyres will be used exclusively on commercial buses and lorries.
Professor Ncube also announced that commercial tyres imported under this policy would be subject to a reduced duty rate of 15%.
The duty suspension is expected to provide significant relief to the transport sector, which has been struggling to recover from the financial losses incurred during the COVID-19 pandemic. During that time, movement restrictions aimed at curbing the spread of the virus significantly reduced transport operators' revenue.
By lowering the costs of essential imports like tyres, the government hopes to boost the efficiency and sustainability of Zimbabwe's public transport network, aiding its recovery and long-term growth.
Source - the chronicle
