Stakeholders in the transport industry have welcomed the
Government’s decision to cut to 10 percent import duty on semi-knocked down
kits used in assembling buses, saying this will reduce the cost of the vehicles
locally, save foreign currency and create jobs.
Stakeholders said cheaper buses would see commuter fares
remaining stable with a reduction in prices across the value chain. The notice of the suspension of the duty is contained in
Statutory Instrument (SI) 8 of 2020 published in the Government Gazette last
Friday.
The SI was published by Finance and Economic Development
Minister Professor Mthuli Ncube.
“It is hereby notified that the Minister of Finance and
Economic Development has, in terms of section 235 of the Customs and Excise
Act, made the following regulations; (1) These regulations may be cited as the
Customs and Excise (Suspension) (Amendment) Regulations 2020 (No.225),” said
Prof Ncube.
He said the reduction of the duty would only benefit those
that assembled buses locally.
Reads section 9 (2) of the new regulations: “Customs duty
is suspended to rate of duty of 10 percent on semi-knocked down bus kits
imported or taken out of bond by an approved assembler for use in the assembly
of buses in terms of this section. (3) No suspension of duty shall be granted
on completely built up bus bodies. (4) Any person who wishes to claim a
suspension of duty in terms of this section shall apply to the proper officer
in the form approved by the Commissioner for registration as an assembler.”
AVM Africa managing director Mr Jacob Kupa said as bus
manufacturers, they welcomed the decision by the Government as this would lead
to a reduction in prices across the value chain.
“We would have preferred further reduction but this is a
welcome development,” said Mr Kupa.
The Zimbabwe Passenger Transport Organisation (ZPTO), an
umbrella body for public transport owners, said Government’s move was a
positive development for the industry.
Said ZPTO secretary-general Mr Wilson Chibage: “The
reduction is welcome and is a step in the right direction if we are to revive
our local bus industry. At the moment, most operators are relying on imports
that are very expensive and require hard currency.
“There is no local bus assembly plant to talk about at the
moment, so reduction of duties will go a long way towards the revival of that
industry and the creation of jobs.” Most operators are importing buses from China for between
US$85 000 and US$150 000.
Willowvale Body Engineering operations manager Mr Silvester
Matambo said while the decision was welcome, Government should consider
incentivising other players in the bus industry.
“This is a good development but we think Government should
also look at players like us who import chassis from South Africa.
“At the moment we are not included in these tax incentives
although we have a big role to play in the revival of the industry,” said Mr
Matambo. Herald
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