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Zvamaida Murwira
Senior Reporter
GOVERNMENT has suspended import duty on commercial tyres for buses and lorries as it seeks to boost the public transport system.
The suspension of duty on tyres was announced by Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, in a Statutory Instrument contained in a Government Gazette published last Friday in terms of the Customs and Exercise Act.
The suspension of duty is meant to ensure at least 1,5 million tyres are imported within two years.
“For a period of two years, with effect from date of publication, customs duty is suspended on commercial tyres imported by approved importers,” reads the notice.
The regulations define “approved tyre importer” as an importer authorised and licensed by the Minister responsible for Industry and Commerce to import commercial tyres in terms of this section. It stipulates that the commercial tyres are those that will be for use by buses and lorries.
“The Commissioner may refuse to grant a suspension of duty to an approved tyre importer on the basis of non-compliance with section 34C of the Revenue Authority Act [Chapter 23:11], the Commissioner shall not grant a suspension of duty to an approved tyre importer where the tyre importer does not have a licence issued by the Minister responsible for Industry and Commerce,” reads the regulations.
It will also be a requirement for an approved tyre importer to submit with the relevant bill of entry, a declaration signed by him or her, to the effect that the commercial tyres were to be used on commercial buses and lorries.
“Subject to this section, the approved tyre importer shall import the commercial tyres at a rate of duty of fifteen per centum,” he said.
The reprieve on duty is expected to boost the transport sector, which is recovering from the Covid-19-induced national lockdown where they lost revenue due to limitation of movements to avoid the spread of the disease.
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