Zimbabwe: Car Duty to Be Paid in Forex
PRICES of imported vehicles are likely to shoot up following a decision by the Government requiring importers to pay excise duty in foreign currency.
According to Statutory Instrument 80A of 2007 contained in last Thursday’s Extraordinary Government Gazette, the Minister of Finance announced that with effect from April 5 2007, importers of cars and other luxury goods will now pay duty and value added tax in foreign currency.
“Payment of customs duty and value added tax on the importation of any item of goods designated as luxury item shall be payable in United States dollars, euros, or any other currency denominated under the Exchange Control (General) Order, 1996 (Statutory Instrument 110 of 1996),” read the notice by the minister.
The general rate of duty for cars ranges between 60 and 80 percent depending on the type of vehicle.
In the past, importers paid for duty in local currency, making it considerably cheap to import.
Zimbabweans were spending an estimated US$400 000 importing an average of 80 used vehicles a day from Japan, Singapore, Dubai, the United Kingdom and the United States.
Business had become so brisk some foreign car dealers were advertising their latest brands of cars in the Zimbabwean Press. READ MORE…