The reduction of duty on motor vehicle importations, as brought about by the November 2010 Budget, has seen a drastic increase in the number of vehicles being imported through the country’s border posts.

 Beitbridge, the country’s busiest border post and arguably the busiest inland port south of the Sahara, has recorded the highest vehicle imports in January. This improvement in volume of imports can be attributed to the fact that many importers delayed the delivery of vehicles which they bought in 2010 so as to benefit from the new rates of duty. Beitbridge Border Post has received over 3 150 vehicle submissions in January 2011 compared to about 2 130 vehicles imported in January 2010.

Importers pay a total of 80% or 55% (if vehicle is not more than five years old) for vehicles of engine capacities exceeding 1 500cc, as compared to a total of 100% or 75% which applied last year. Motor vehicles with an engine capacity of between 1 000cc and 1 500cc attract Customs Duty at 25%, VAT at 15% and Surtax at 25% - if the vehicle is more than five years old.                       

On the other hand, motor vehicles with an engine capacity exceeding 1500cc attract Customs Duty at 40%, VAT at 15% and Surtax (if vehicle is more than five years old) at 25%.