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Zimbabwe transporters welcome suspension of customs duty
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The Zimbabwe Passenger Transport Organisation (ZPTO) has welcomed the government's decision to end duty-free importation of public service buses starting January 1, 2025. The move, proposed in the 2025 national budget, aims to prioritise local vehicle assembly and empower domestic manufacturers.
The government announced that customs duty on semi-knocked-down kits for buses and trucks would be suspended for two years to support local production.
In a statement, ZPTO chairperson Samson Nhanhanga hailed the initiative, highlighting its potential to create jobs, boost local manufacturing, and conserve foreign currency.
Nhanhanga noted that the duty-free rebate, introduced in 2022, had achieved its goal of addressing the country's transport needs.
"After the duty-free rebate for buses was announced, we purchased over 1,500 buses. Currently, we are expecting another 200 buses to arrive this festive season," he said.
"Our initial target was 500 buses, but we surpassed it, tripling the number. With this, we have enough buses to meet demand for the next three years."
Nhanhanga praised the government's focus on cutting the import bill and empowering the local bus manufacturing industry.
"This development will create jobs for locals and save foreign currency that would have been spent importing buses from China. We urge stakeholders to focus on value addition and enhancing the capacity of our bus manufacturing sector," he added.
The duty-free policy, introduced to alleviate transport challenges, allowed approved importers to bring in up to 20 public service buses without paying customs duties. The policy will now shift towards incentivizing local assembly, with suspended duties on semi-knocked-down kits offering a two-year window for manufacturers to scale up operations.
Meanwhile, Nhanhanga revealed that ZPTO is collaborating with the Traffic Safety Council of Zimbabwe to launch road safety awareness campaigns ahead of the festive season.
"We have engaged the Traffic Safety Council to advocate for an accident-free holiday. Our crews are being trained on the importance of avoiding road accidents," he said.
The initiative comes as the country braces for increased travel during the festive period. Last year, between December 15 and 26, 87 people lost their lives and 424 others were injured in 1,194 road accidents.
As Zimbabwe transitions toward locally assembled buses, the move is expected to boost the transport sector's sustainability and contribute to the country's economic growth. By combining enhanced road safety measures with domestic manufacturing, the ZPTO and the government aim to create a safer, more self-reliant future for public transportation.
The government announced that customs duty on semi-knocked-down kits for buses and trucks would be suspended for two years to support local production.
In a statement, ZPTO chairperson Samson Nhanhanga hailed the initiative, highlighting its potential to create jobs, boost local manufacturing, and conserve foreign currency.
Nhanhanga noted that the duty-free rebate, introduced in 2022, had achieved its goal of addressing the country's transport needs.
"After the duty-free rebate for buses was announced, we purchased over 1,500 buses. Currently, we are expecting another 200 buses to arrive this festive season," he said.
"Our initial target was 500 buses, but we surpassed it, tripling the number. With this, we have enough buses to meet demand for the next three years."
"This development will create jobs for locals and save foreign currency that would have been spent importing buses from China. We urge stakeholders to focus on value addition and enhancing the capacity of our bus manufacturing sector," he added.
The duty-free policy, introduced to alleviate transport challenges, allowed approved importers to bring in up to 20 public service buses without paying customs duties. The policy will now shift towards incentivizing local assembly, with suspended duties on semi-knocked-down kits offering a two-year window for manufacturers to scale up operations.
Meanwhile, Nhanhanga revealed that ZPTO is collaborating with the Traffic Safety Council of Zimbabwe to launch road safety awareness campaigns ahead of the festive season.
"We have engaged the Traffic Safety Council to advocate for an accident-free holiday. Our crews are being trained on the importance of avoiding road accidents," he said.
The initiative comes as the country braces for increased travel during the festive period. Last year, between December 15 and 26, 87 people lost their lives and 424 others were injured in 1,194 road accidents.
As Zimbabwe transitions toward locally assembled buses, the move is expected to boost the transport sector's sustainability and contribute to the country's economic growth. By combining enhanced road safety measures with domestic manufacturing, the ZPTO and the government aim to create a safer, more self-reliant future for public transportation.
Source - newsday
