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Mixed feelings over car imports ban

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PROSPECTIVE car owners and dealers have been relieved after Government clarified the import ban on motor vehicles that are more than five years old. The June 30 deadline had dampened hopes of some prospective car owners in the country. Partson Mbiriri, the Secretary for Transport, Communication and Infrastructural Development, had earlier on maintained that the June 30 deadline would stand. However, the Minister of Transport, Communication and Infrastructural Development, Nicholas Goche, assured the public that no one would be barred from importing a vehicle that is more than five years old until consultations with the relevant stakeholders were complete. The Government Gazette of April 1 2011 set October 31 2011 as the cut-off date. The public, however, expressed mixed feelings on the recent clarification on car imports by the ministry. Car dealers expressed their relief adding that they made brisk business through selling Japanese used cars. “We are happy that the Government has clarified the ban of second-hand vehicles that are more than five years old because some of us were caught in the maze here,” said one Samson Moyo. “I purchased five vehicles and I was failing to raise money for clearing them before the June 30 deadline, but as for now, I can sleep in peace. “I usually buy three vehicles at once from Japan and ship them into the country via Durban port.” Prospective car buyers said that the Government should lift the ban recommending that the country through the Vehicle Inspection Department, assess the roadworthiness of the vehicles imported before registering them. The country’s policy over the importation of cars needs to protect the local motor industry. Currently, Willowvale Mazda Motor Industry (WMMI) is only producing the Mazda BT50 model, while Quest Motors has shelved operations. The motor assembling plant receives its kits from Japan and in the past three months, the Asian country was affected by natural disasters resulting in a cut of supplies. A brand new car produced by WMMI costs more than US$15 000. A car dealer in Beitbridge urged the Government to lower import duty and value added tax to encourage people to import cars less than five years old. “The surtax charge of 25 percent is not a deterrent as some cars are bought for US$1000 or less.” Several people said the motor industry had the potential of creating thousands of jobs both in the mainstream and downstream industries. Road taxes and insurance, among other things, would boost Government coffers. Analysts had predicted a sudden rise in the price of the cars on the market soon after the June 30 deadline. The country charges about 25 percent excise duty on cars with an engine capacity of between 1 000 and 1 500 cubic centimetres, 15 percent VAT and a surtax of 25 percent for vehicles that are more than five years old.

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