A BULAWAYO man has taken the Zimbabwe Revenue Authority
(Zimra) to court challenging its decision to charge him duty in foreign currency
for his imported vehicle.
The vehicle, a Toyota Hilux was imported from the United
Kingdom in December last year and has been stuck at Plumtree Border Post after
the owner Mr Lincoln Moyo failed to raise the required amount in foreign
currency to pay duty.
Mr Moyo, through his lawyers Ncube and Partners, Friday
filed an urgent chamber application at the Bulawayo High Court citing Zimra and
its Commissioner-General Ms Faith Mazani, as respondents.
He also wants an order exempting him from paying storage
charges for his car pending the finalisation of the matter.
In his founding affidavit, Mr Moyo said in terms of the law
he qualified to be exempted from paying duty for his car in foreign currency.
He argued that the vehicle was consigned on December 17
last year before Statutory Instrument 252A-Customs and Excise (Designation of
Foreign Currency Dutiable Goods) Notice 2018 came into effect. According to S1
252A, goods purchased on or before November 22, 2018 and consigned on or before
January 3, 2019 are exempted from the operation of this notice.
“Prior to the advent of the SI 252A, importers would be
allowed to pay duty in the local currency which is now known as RTGS$. The
advent of that Statutory Instrument brought about the requirement to pay duty
in foreign currency and in my case, I submit that I am exempt from paying duty
in foreign currency,” he said.
Mr Moyo said despite applying for exemption the respondents
failed to respond to his letter.
“Acting in terms of SI 252A, I applied to the Zimra station
manager at Plumtree Border Post for exemption and the matter was referred to
the Commissioner General who failed to respond. The contents of the letter
betray the fact that the second respondent (Ms Mazani) does not understand the
provisions of the statutory instruments,” he said.
Mr Moyo argued that the law stipulates that one can apply
for exemption simultaneously with the importation of the car at any rate within
42 days from the date of importation
He argued that his car has been unlawfully stuck at the
border post because he is failing to complete the importation process as Zimra
insists on him paying duty in foreign currency.
“At the same storage charges are being levied at the rate
of US$10 per day and because they are being paid in foreign currency, the
respondents are benefitting twice as they are gaining on storage charges and at
the same time insisting on me paying the duty in foreign currency,” said Mr
Moyo.
Zimra is yet to respond to the application. The Government, last year, introduced the payment of
customs duty in foreign currency for motor vehicles in a move aimed at
controlling the surge in the importation of non-productive goods.
Announcing revenue enhancing measures in his 2019 National
Budget statement in Parliament in November last year, the Minister of Finance
and Economic Development, Professor Mthuli Ncube, said the measures were
critical in redirecting use of scarce foreign currency to the productive sector
and implementation of measures to control imports, which continue to outstrip
exports thereby exerting pressure on foreign currency requirements amid a
widening trade deficit. Chronicle
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