Older Imported Second-hand Cars To Pay Less Duty

Finance and Economic Development Minister Mthuli Ncube has defended clause 25 of the Finance (No 3) 2019 Bill, which states that older second-hand car vehicle imports will pay less duty than newer vehicles.

Responding to Dzivarasekwa MP Edwin Mushoriwa (MDC Alliance), who had suggested that older cars should pay more duty due to environmental impact concerns, Ncube said:

We are not trying to necessarily restrict the old vehicles over new vehicles. The intention rather is to recognise the remaining life and making sure the excise duty is progressive enough.

Those with newer cars pay more because of longer shelf life and those with older cars pay less. That is how we have designed it and we think it is fair to design it that way.

Clause 25 of the Finance (No 3) 2019 Bill outlines the Zimbabwe dollar rates of special excise duty on second-hand motor vehicles, which will take effect from January 1, 2020.

For instance, an imported second-hand vehicle with a lifespan of zero to four years and an engine capacity of up to 1 000cc will pay excise duty of $3 000, while one that is over 20 years, all engine capacities, will pay ($500).

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