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Vehicle imports through Beitbridge Border Post have increased drastically in the past few weeks

Thupeyo Muleya Beitbridge Bureau
MOTOR vehicle imports through Beitbridge Border Post have increased drastically in the past few weeks as dealers are rushing to buy cars before the proposed 20 percent customs duty increase on imported motor vehicles comes into effect on November 1.

Finance and Economic Development Minister Patrick Chinamasa recently announced the government’s plans to increase duty on motor vehicles, which he said contributed 10 percent of the country’s estimated $4 million import bill in the first half of this year.

In his mid-term budget review statement, the minister proposed an increase in customs duty on a single cab of a payload more than 800kgs from 20 percent to 40 percent.

Import duty for buses with a carrying capacity of 26 passengers and above is proposed to rise from 0 percent to 40 percent while that of double cab trucks would rise from 40 percent to 60 percent.

Passenger motor vehicles of engine capacity below 1,500cc would be levied at a 40 percent rate up from 25 percent.

However, duty for vehicles with engines above 1,500cc would remain at 86 percent inclusive of VAT and surtax.

The development has raised anxiety among most Zimbabweans who are now rushing to buy second hand cars from Japan, which come through South Africa.

Investigations by our Beitbridge Bureau has shown that the Zimbabwe Revenue Authority (Zimra) is processing an average of 170 car imports at the border post per day since the beginning of October.

Prior to the announcement, Zimra used to process between 60 and 70 car imports per day.

Zimra officials at the border said in separate interviews yesterday they were battling to clear the vehicles at Manica Transit Shed where 300 new cars arrived per day.

“We used to get 100 to 150 cars per day, but now the number has doubled and is ever increasing,” said one of the officers on condition of anonymity.

A sales manager at Wright Cars on the South African border, Clemence Mabidi, said demand for cars with small engines such as Nissan March, Honda Fit, Toyota Vitz, Toyota Corolla, Toyota Raum and Fun Cargo had increased drastically.

“We used to sell around 20 cars per day but now the number has increased to 40 and we’ve a backlog in deliveries to Zimbabwe.

“We’re now hiring other vehicle carriers to take the vehicles across the border,” he said.

Mabidi said even the small car dealers who used to sell between five and 10 cars per day were now selling up to 20 vehicles.

Some dealers have increased prices because of the demand.

Major car dealers at the South African border include Quest Royal, Wright Cars, Car Cade, Murree Motors, Noble Motors and KDG.

A modest vehicle costs between $2,500 and $3,000 at these dealerships.