The cost of importing used vehicles is likely to increase as government is considering raising import levies on all pre-owned cars, Industry, Commerce and Enterprise Development Minister Mike Bimha has said.
The initiative, meant to curtail grey imports and create the market for new vehicles, will entail a gradual increase in customs duty and surtax to narrow the cost gap between new and used cars.
Minister of Industry, Commerce and Enterprise Mike Bimha has said that the government is considering increasing the import levies on pre-owned cars in order to discourage people from importing the cars. Speaking to Business Weekly, Bimha said,
We are not going to ban the second-hand cars but to put in place restriction measures to support the growth of the sector.
However, the policy has been criticised as being elitist. Brains Muchemwa, the chief executive of Oxlink Capital said,
The income levels in Zimbabwe are very low and will not sustain viable demand. Vehicle hire purchase should generally not exceed 30 percent of buyers’ monthly incomes. It is a good policy but very elitist.