Surtax on imported double cab vehicles scrapped

The 25 percent surtax was removed a month after its introduction on January 1 this year. It was reintroduced under Statutory Instrument 156 of 2011.
Surtax is a tax levied on top of another tax. It can be calculated as a percentage of a certain amount or it can be a flat dollar amount.
In an interview yesterday Zimbabwe Revenue Authority director for legal and corporate affairs, Ms Florence Jambwa, said: “Only double cab motor vehicles were affected by the reintroduction of the 25 percent surtax in terms of Statutory Instrument 156 of 2011 with effect from 1st January 2012.
“The double cab motor vehicles were, however, removed from the surtax list with effect from 7 February 2012 (in terms of Statutory Instrument 12 of 2012). Second-hand light passenger motor vehicles of heading 87.03, which are more than five years old from the date of original manufacture, still attract surtax.”
Twin cabs now attract a 65 percent customs duty just like any other private cars.
Ms Jambwa said the rates of duty on imported motor vehicles are dependent on the type of vehicle.
“Motor vehicles for the transport of 10 or more persons including the driver (buses, kombis, etc) attract customs duty of 0 to 60 percent. Those vehicles principally designed for the transport of persons other than those mentioned above attract customs duty of 25 percent to 40 percent. These vehicles include light passenger motor vehicles and station wagons among others.
“Motor vehicles for the transport of goods attract customs duty of 25 percent to 40 percent depending on the gross vehicle weight. This category includes pick-up trucks and double cabs.
“In addition to the customs duty, there is Value Added Tax (VAT) of 15 percent and surtax of 25 percent on second-hand motor vehicles which are more than five years old,” she said.
Ms Jambwa said that customs duty on car imports was calculated based on the value for duty purposes (ie value of the vehicle plus freight plus insurance plus any other charge/s incurred outside Zimbabwe).
She said on average, it should take under an hour for one to get his car completely cleared at the border post with all the necessary papers in order.
“From the time of submission of all the relevant and proper import documents, it takes at most 20 minutes per declaration for valuation to be completed. After valuation, the importer has to go to the border post to settle their duties where our cash office is situated. It, therefore, takes an average of one hour for an individual importer to clear a motor vehicle at Beitbridge Border Post.
“Please note that we currently do not have any backlogs for customs clearance certificates. We have consistently managed to capture and release all CCC applications that we receive on a daily basis.
“Our neighbours, South Africa, have changed their system in that their notification system for motor vehicle importations is now 24 hours.
“This, therefore, means that no vehicles bought on a particular day can be moved to Zimbabwe on the same day it was bought. Such a delay results in the purchaser of the vehicle having to spend an extra day waiting for the vehicle to be delivered.”
She said the preclearance system was dependent upon the type of the importer.
“If the importer is a car dealer who is importing new motor vehicles, preclearance may be used. For importers of second-hand motor vehicles, preclearance is not permitted because an assessment of the value of the car needs to be done first to verify the declared value before duty can be assessed,” said Ms Jambwa.
There are also other facilities which importers can use to clear their cars such as the immigrant rebate under the Customs and Excise Act.