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The second-hand car ban is decimating ZIMRA’s revenue

   
8 comments

The worst kind of wound is that which is self-inflicted. Nothing hurts more than knowing that whatever action you took was down to your own lack of foresight or “right-thinking”. The Zimbabwe Revenue Authority (ZIMRA) has reported that it is processing 63% fewer vehicle imports after the enactment of SI 89 of 2021 which banned second-hand cars over 10 years.

“Prior to the implementation of Statutory Instrument 89 of 2021 on April 2, we would process import documents for 60 vehicles at Beitbridge per day. That has reduced to an average of 22 cars”

Francis Chimanda, Zimbabwe Revenue Authority Spokesperson (via The Chronicle)

We all saw this coming… The taxman was making a tidy sum from second-hand car imports and the govt went and cooked the golden goose. So how much is ZIMRA loosing exactly from the second-hand car ban?

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Well, when pressed ZIMRA spokesperson Francis Chimanda had this to say:

“Unfortunately, I cannot disclose the amount of revenue we are getting from vehicle imports since our system does not separate revenue from motor vehicles and that which is received from other goods”

My two cents on this is that they know how much is being lost but the shame of admitting it is the real issue. SI 89 2021 was a misguided effort to prop up a car assembly industry in Zimbabwe, which by all accounts, is not completely on its feet again.

Instead of focusing on making the local car assembly industry competitive, engaging financial institutions to dive into vehicle loans and financing. They opted to stem the flow that made the most sense for most Zimbabweans.

To make matters worse, anyone who bought a car in and around the time that S1 89 was proclaimed now has two options. Go to the Ministry of Transport and try to get an import licence or sell the car at a massive loss to any takers on the other side of the border.

You should read

Why the reasons for banning second-hand cars make no sense


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Comments 8

Juno
3 weeks ago

Well, well, well, you reap what you sow. Of course they know how much they are losing. There is no way their system doesn’t tell them.

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TnashMkz
3 weeks ago

I consider this a bad omen. In light of this revelation this means that there will be a new tax to paid in order to match the revenue they were getting before.

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Nesongano
3 weeks ago

You guys do not read documents that you reference in your articles. Who said Ministry of Transport is the issuing authority of motor vehicle import permits? Section 3 of Statutory Instrument 89 of 2021 clearly says;

Second-hand motor vehicles aged ten (10) years and above, from the date of manufacture at the time of importation shall require an Import Licence from the Ministry of Industry and Commerce.

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Nesongano
3 weeks ago

Again the ZIMRA PR guy just decided not to disclose how much they are losing because it is easy to get that information from their ZIMRA’s Customs system. It should be easy to filter out such information using their tariff. SI 89 of 2021 listed motor vehicle tariff heading that are affected by this and these are:-

Second-hand motor vehicles which are ten (10) years older from the date of manufacture classified under headings 8702, 8703, 8704:2120, 8704:2130, 8704:2140, 8704:2190, 8704:3120, 8704:3130, 8704:3140 and 8704:3190 of the customs tariff.

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Research Firsy
3 weeks ago

Duty on a 2005 car vs duty on a 2015 car dzakasiyana. One 2015 merc duty is equal to 5 Honda Fits 2005 models. Please do your research first before writing. Musangomhanyire kunyora ma articles based on quantity only.

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    Anonymous
    3 weeks ago

    Hoooookay. Saka vanhu vaitenga Honda Fit one vange vaakutenga One 2015 merc. Good plan, more money for government. 2015 mercs are really popular.

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    Anonymous
    3 weeks ago

    Saks urikuti vanhu vaitora 60 ma 2005 Honda Fit ndivo vaakutora 22 ma 2015 merc per day? 😂😂😂

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Anonymous
3 weeks ago

Think of dumping

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