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Government Set To End Duty-free Importation Of Buses

4 months agoMon, 02 Dec 2024 10:22:07 GMT
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Government Set To End Duty-free Importation Of Buses

The Zimbabwe Passenger Transport Organisation (ZPTO) has welcomed the government’s plans to end the duty-free importation of public service buses and prioritise local vehicle assembly.

In his presentation of the 2025 national budget, Finance Minister Mthuli Ncube proposed that the temporary suspension of customs duties on imported public service buses be lifted starting January 1, 2025. He said:

Cognisant of the plight of the commuting public, Government, in 2022, temporarily suspended customs duty on public service buses imported by approved transport operators.

Transport operators have, thus, taken advantage of the Facility to replenish their fleet, where 827 buses have already been imported, against a target of 500.

In view of the substantial benefits that have accrued to approved importers, and the need to redirect resources towards value addition, I propose to terminate the Suspension of Duty Facility on imported buses, with effect from 1 January 2025.

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Current legislation provides for the importation of Completely Built Units (CBUs) for buses at 0% duty, whilst Semi Knocked Down (SKD) kits for buses and trucks attract duty at 10%.

This has created an uneven playing field in the bus assembly industry, since it is cheaper to import CBUs as opposed to kits.

In a statement, ZPTO chairperson Samson Nhanhanga said that the government’s move will create local jobs and help conserve foreign currency that has been spent on importing buses from China.

In 2022, the government suspended import duties on public transport buses, granting approved importers a duty-free rebate for up to 20 vehicles.

Meanwhile, Finance Minister Mthuli Ncube said the motor vehicle assembly sub-sector has been identified as a key “quick-win” value chain, with significant potential to transform Completely Knocked Down (CKD) kits and Semi Knocked Down (SKD) units into Completely Built Units (CBUs) on the local market. He added:

In line with NDS1 priorities, Government will prioritise local production of motor vehicles, which will go a long way in creating the necessary value chains, creating jobs, as well as reducing the importation of finished products.

In addition, the local industry needs to gear itself for a larger export market available under the African Continental Free Trade Area, whereby the value-added threshold (local content) for Rules of Origin has been set at 35%, in order to benefit upstream industries that provide in excess of 50% local content.

In order to support the local assembly of motor vehicles, I propose to wholly suspend customs duty on Semi Knocked Down Kits for a period of 2 years, beginning 1 January 2025.

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17 Comments

263 · 4 months ago
The selfish imbeciles have come to their senses.
Anonymous · 4 months ago
vavakuda kuti ma companioes achitenga avo ne price mupengo vana satan avo
Mp · 4 months ago
kkk which industry we don't manufacture buses in Zimbabwe let alone tooth pick
VaBhomba · 4 months ago
MA bhazi anogadzirwa baba muno endai pamasasa apo musanhi arikugadzira mabhazi ipapo
Anonymous · 4 months ago
bus rinogadzirwa muno richiita marii kuri tenga kwanayi baba thats mind set problem at your age you cannot diffentiarate what is right and good son of evil
jivaschihwehwete@gmail.com · 4 months ago
Akapedza kutenga aaida here Tagwirei
Corruptmore Looto · 4 months ago
All government vehicles should be procured from local manufacturers, that's the only way to resuscitate the industry since government is the number one buyer of vehicles, no more Ford Rangers or ISUZU imports, they should do it like they did in the 80s and 90s.
Anonymous · 4 months ago
We don't have the capacity or the facilities to assemble Isuzu or Fords. Mitsubishi tried, but that got screwed up. I don't see brands trusting the local market to produce their products when all large firms are looking to leave. AVM has always been available to produce and those buses were made for Zimbabwe. Rough and tough. They have cancelled the duty rate on full buses however, have moved the duty free rate to knock down kits. AVM will still not get a piece as this will all be Chinese buses manufactured by companies who are connected. As they will have exclusive right to import and get duty free, the local market will get no benefit other than being Lego builders. And these duty free benefits was listed under Support for Industries. How does buying buses benefit industry when there were sufficient Commuter buses, they just needed to be controlled. They are mostly controlled by police and army, so it in fact benefited industry 0%.
VaBhomba · 4 months ago
Hamurevi nhema mkoma
VaBhomba · 4 months ago
Hamurevi nhema mkoma
Corruptmore Looto · 4 months ago
The reason why we don't have the capacity to do it is because of government not committing to purchase those vehicles. We mostly assembled Mazdas ourselves, I think we only got the gearbox and the engine but most of the other stuff we did it here. There is absolutely no reason why we can't do it again, these things simply need political will to happen, manufacturers will come on board if they receive solid guarantees from the government. As for the buses, the same thing used to happen, AVM only imported Dutch engines and gearboxes but the rest we did it ourselves, Chinese buses destroyed the sector. What's simply needed is bold leadership which isn't afraid to make the hard decisions, ban second imports and adopt the South African system where firms, government and rich citizens who are able to buy locally assembled cars get newer models almost every 2 to 3 years and then car dealers get their second cars from these people when they upgrade their cars, they will still be in good condition and sell them to the rest of the public at cheaper prices. But this all needs bold leadership and we should be able to make sacrifices at first as we would not be able to attract the marquee car manufactures at first but we might persuade other decent brands to come in but imports should be made so expensive that rich persons and entities are forced to go to the local market, sacrificing that big bad Ranger for a Mitsubishi or Mazda for the sake of the economy to me is much more understandable than making foreign currency leave the country while also exporting jobs.
Ctrl Alt Del · 4 months ago
we need young leaders with brains
.... · 4 months ago
like wat they do in kenya and nigeria gvt inotenga zvimota zvavo zviye zvinenge ma box
g · 4 months ago
meaning if I want to import a Honda fit engine I will no longer be required to pay duty???
VaBhomba · 4 months ago
Munobhadhara baba
...,. · 4 months ago
did zupco take advantage, with only the total of 827 buses ordered?
jivaschihwehwete@gmail.com · 4 months ago
aripi? only figures left

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