Zimpapers Logo

Thupeyo Muleya Beitbridge Bureau
Beitbridge border post is experiencing a significant decline in volumes of imported used cars following a 20 percent increase in excise duty which took effect on November 1. “We are processing documents for less than 40 vehicles per day compared to the previous month when we would deal with over 150 cars,” said a zimra official.

Investigations by The Herald indicate that before the new duty regime, zimra was making over $100 000 on car imports at Manica transit shed a day, but the figure has declined to around $30 000.

A modest vehicle costs between $3 000 and $4 000 at dealerships on the South African side of the border and attracts import duty of the same amount.
Before the introduction of the new regulations, zimra officials were clearing around 170 vehicle imports a day as dealers rushed to beat the November 1 deadline.

Finance and Economic Development Minister Patrick Chinamasa recently announced an increase in customs duty on single cab vehicles with a payload of more than 800kg from 20 percent to 40 percent.

Buses with a 26-passenger carrying capacity and above will pay 40 percent from zero duty, while duty for double cab trucks was reviewed from 40 to 60 percent.
Vehicles with an engine capacity below 1 500cc had their duty increased from 25 to 40 percent.

Customs duty for vehicles with engine capacity above 1500cc remains at 86 percent, inclusive of VAT and surtax.
The new development has seen the Zimbabwe Revenue Authority processing fewer vehicles at Manica transit shed in Beitbridge.

In separate interviews, vehicle dealers at the South African border said they were struggling to sell five cars a day.
Major car dealers at the South African border include Quest Royal, Wright Cars, Car Cade, Murree Motors, Noble Motors and KDG.

“Business is very low. We hope things will normalise with time. At the moment we are selling around five cars as compared to the usual 40 a day,” said Mr Clemence Mabidi, one of the dealers at Wright Cars.

He said cars with small engines such as the Nissan March, Honda Fit, Toyota Vitz, Toyota Corolla, Toyota Raum and FunCargo were on high demand before the new duty regime.

Other dealers said they were considering reducing prices to clear current stocks so they could bring in more vehicles in preparation for the festive season.