Vehicle imports rake in US$46m

Source: Vehicle imports rake in US$46m | The Sunday Mail Aug 13, 2017

Business Reporter
REVENUE collections from customs duty on imported motor vehicles rose 2,4 percent to US$46,6 million in the six-month period to June from US$45,5 million a year ago.

New vehicle imports grew 35 percent. Zimbabwe Revenue Authority chairperson Mrs Willia Bonyongwe told The Sunday Mail Business  last week that 8 371 new motor vehicles were imported in the first half of 2017 compared to 6 177 during the same period last year.

Overall, customs duty from motor vehicles accounted for 17 percent of duty collections in 2016.

“The contribution is high as a result of the importation of new motor vehicles. It should be noted that the customs duty revenue head is not underpinned by the importation of second-hand motor vehicles,” said Mrs Bonyongwe.

“The 35 percent surtax, which is levied on the importation of motor vehicles older than five years from date of manufacture, is meant to discourage importation of uneconomic and aged vehicles into Zimbabwe,” she said.

Imports of second-hand vehicles are declining as foreign currency shortages take their toll on the market.

In January-June 2017, Zimbabweans spent US$250 million on second-hand cars, down from US$365 million a year earlier— a 31 percent decline.

In 2014, US$469 million worth of used cars were imported compared to US$620 million in 2013.

The Zimbabwe National Roads Administration says half of the 1,2 million vehicles on the country’s roads are second-hand.