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Import Duty On Motor Vehicles And Specified Goods To Be Paid In Forex

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One of the shockers from the latest budget presented before Parliament today by the Minister of Finance is that duty on imported cars and specified goods will now have to be paid for in foreign currency instead of Ecocash/RTGS or Bonds.

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Honourable Members will be aware that Government has, over the years, implemented demand management measures with a view to redirect usage of the scarce foreign currency to productive industries. Such measures include adjustments to the customs duty regime and control of imported goods through the licensing system.

Despite some success, Government has, during the course of 2017 and 2018, witnessed a surge in the importation of nonproductive goods, particularly motor vehicles.

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In order to redirect use of scarce foreign currency to the productive sectors of the economy, I propose that customs duty on motor vehicles be levied in foreign currency acceptable as legal tender, with effect from 23 November 2018.

Several weeks ago there were rumours that duty would now be paid in foreign. Government officials rubbished these claims as fake news. It is now clear that whoever leaked these things clearly had their ears close to the ground and knew what they were saying.

The rule does not apply to kombis, taxis and other commercial vehicles

This measure will, however, not apply on imports of commercial motor vehicles and vehicles for use by the physically challenged.

Duty on selected goods will also now have to be paid in forex

Furthermore, payment of customs duty in foreign currency will also apply on Selected Goods

If you are wondering what these Selected Goods are. You can download a list of these Selected Goods by tapping/clicking this link. The good news is that for now this does not seem to apply to tech gadgets-for now. Who knows what else the tax hungry government will add to their list of Selected Goods.

Again the exchange rate is clearly no longer one as to one

The government is artificially keeping the exchange rate at one as to one. Yet when it suits them they are essentially demanding payment in foreign currency while making it illegal for everyone else to do the same. They keep issuing bond notes and increasing RTGS balances, they keep paying civil servants in bond notes, RTGS and Ecocash.

They are trying to have their cake and eat it too. The fundamentals of Economics will not allow that. There will be some sort of reckoning I imagine. We are at the cusp of full macroeconomic meltdown if this sort of blatant discrimination is allowed to continue businesses will close or resort to the black market.

KombiBond NotesEcoCash

Kombi is the informal name of minibuses in Zimbabwe. This is usually given to the 18 seater type which are privately owned but used for public transport in the country. They are the most popular form of public transport in Zimbabwe a result of the... Read More About Kombi

Bond Notes are a currency of notes backed by a bond that the Zimbabwe government announced on 4 May 2016 by Reserve Bank of Zimbabwe (RBZ) governor John Mangudya. The $2 denomination of the notes was finally introduced on 28 November 2016. More notes were... Read More About Bond Notes

EcoCash is a mobile money transfer facility which is run by Econet Wireless Zimbabwe. The facility has grown in leaps and bounds since its inception and is arguably the largest mobile money transfer agent considering the huge sums of transactions that the platform is said... Read More About EcoCash

4 thoughts on “Import Duty On Motor Vehicles And Specified Goods To Be Paid In Forex

  1. SO THIS MEANS THAT EVEN THE GVT OR THE MINISTRY OF FINANCE HAS NO CONFIDANCE IN ITS BOND MONEY.

    IF BOND AND US$ RATE IS 1:1 WHY SLD ZIMRA REJECT TRANSFER AND BOND NOTES?????

  2. Guys, don’t blame Zimra. They just enforce what the Ministry of Finance/ Government tells them to. The problem lies with Zanu. They craft useless policies that should never see the light of day.

  3. Zimbabweans are suffering the little they make this government wants it pound of flesh. They want forex after they stole our forex. Blood hounds that’s what you are.

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