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Civil servants to reveal source of funds

19 Jan 2020 at 05:35hrs | Views
CIVIL servants importing vehicles under the government's special motor vehicle rebate may be asked to produce proof of their source of funds, the State has said.

Statutory Instrument (SI) 52 of 2019 promulgated in March last year provided a rebate on motor vehicles imported by civil servants and members of the Public Service Commission.
The rebate was meant to incentivise civil servants who have been complaining of poor remuneration and working conditions.
However, SI 12 of 2020 on Customs and Excise (General) (Amendment) Regulations, 2020 published in the Government Gazette yesterday set more conditions which civil servants must meet when applying for the rebate.

"In consideration of an application for a rebate under this section, the Commissioner may— (a) only grant a rebate for motor vehicles purchased from traceable and registered car dealers; (b) request for proof of source of funds where the secretary responsible for Finance and Economic Development has in exercising his or her discretion in terms of subsection (3)(a) directed that the applicant furnish such proof to him or her; (c) revalue the motor vehicle in line with the existing customs valuation regulations in cases where he or she suspects undervaluation of the motor vehicle," read the SI.

This comes as the least civil servant is earning around $1 100, less than US$50 on the black market. The least expensive ex-Japanese car costs around US$1 800 to import to Zimbabwe.
The SI further specified the same requirements to health workers importing cars under the Health Service Vehicle loan scheme.

This comes barely two months after the Finance ministry threatened cross-border traders, saying they would be forced to declare their "source" of foreign currency when importing goods in a bid to arrest parallel market trading which has precipitated massive price hikes.he country is currently grappling with price vexations due to currency distortions as businesses were indexing prices against the parallel market rates following the crash of the wobbly Zimbabwe dollar against the US unit.

The SI also stipulated that government workers Grade B1 to B5 or equivalent would be allowed to import cars worth less than US$3 500 in terms of import value  while Grade E1 to E3 or equivalent will be benchmarked at US$10 000.

"Section 105 ("Rebate of duty on immigrant's effects") of the principal regulations is amended by the insertion after subsection (4) (c) of the following— "(d) any motor-vehicle of a value in excess of US$5 000 imported by an immigrant who is a returning student, having left Zimbabwe for the purpose of attending any educational institution," further read the SI.

Source - dailynews
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