The policy to pay duty in foreign currency for imported
cars introduced by Government three weeks ago has had a devastating effect on
the border town of Beitbridge with 300 agents now out of business and a lot
more downstream industries dying after cash dried up.
Sources who spoke to The Mirror said that the agents put
together used to bring an average of US$20 000 in hard currency into Beitbridge
on a daily basis but this income has since dwindled to as little as $1 500.
“As agents we cleared an average of 200 cars a day before
importers were made to pay duty in foreign currency. We charge US$100
commission per car and we collectively earned $20 000 every day. After the
introduction of the new policy, the number of cars that we clear has dropped to
15 a day and our collective income is now just US$1 500 a day. This is the
money that now circulates in Beitbridge,” said an agent who declined to be
named.
The sharp drop in the cash in circulation has also shaken
the downstream industry including construction, hotels, retail and even air
time vendors, said a source.
“There is just no business for car clearing agents in
Beitbridge anymore. There are more than 300 agents and they are now looking for
other things to do because the business of clearing cars is now dead. An agent
could clear two or three cars a week but now one can go for three weeks without
clearing a single car,” said one clearing agent.
The agents said they cannot even look after their families. “We are out of jobs and we cannot even look after our
families; that is how badly the Government policy has affected us. It is not
just us but everyone who lives in Beitbridge is affected. Everyone is affected
and we don’t know how we are going to pay our bills or get food on the table,”
said another clearing agent.
The Mirror understands that ZIMRA’s income through imported
vehicles has plummeted by $27m in the last three weeks while about 24 of its
workers at its vehicle warehouse who worked two shifts have become redundant
because of lack of business.
Vehicles exempted from paying duty in foreign currency are
those with an engine capacity of above 3000cc
Clevers Moyo, co-ordinator of Beitbridge Business
Association said the introduction of the payment of duty in foreign currency
has crippled the clearing industry. ‘‘It would have been better if Government
had reduced tax because many people are going to lose jobs,” he said. Masvingo
Mirror
0 comments:
Post a Comment