Zim vehicle plates overpriced – Industry

HARARE - The Confederation of Zimbabwe Industries (CZI) has called on government to reduce the cost of local vehicle number plates, pointing out that it is too high compared to regional countries.

In the body’s recommendations and expectations for the upcoming 2017 National Budget, CZI pointed out that the present pricing structure on vehicle plates was uncompetitive and “unnecessarily high”.

“Currently, Zimbabwe is charging $160 for motor vehicles and $140 for a trailer or motorcycle.

“Whilst on the other hand cost of vehicle number plates in Johannesburg, South Africa is R180.

“Using a Rand: USD exchange rate of R15=$12 this makes Zimbabwe 13,34 times more expensive than our regional counterpart,” the industry body pointed out.

CZI recommended that in his 2017 National Budget, Finance minister Patrick Chinamasa must review the price downwards, pointing out the present pricing regime was too exorbitant.

“This reduces the burden on vehicle users in-terms of vehicle number plate registration and replacement cost,” CZI said.

This comes as Transport minister Joram Gumbo recently announced that his ministry was actively looking at reviewing the plate price downwards.

“My ministry is currently reviewing the cost of the number plates with a view to making them more affordable.

“When we do that, we will still have to come back to Parliament and have everything gazetted in the interest of the public, but we are working on it right now,” Gumbo told Parliament earlier this year.

Chinamasa also recently increased customs duties and surtax on cars, a move which adds to the woes of local motorists.

Treasury’s argument was the move will reduce Zimbabwe’s widening trade deficit and protect local industries from cheap imports, with Chinamasa saying there was need for the country — which has been experiencing recurrent trade deficit in the past few years — to have confidence in locally made products as a way of reviving industry.

Chinamasa’s hike brought to 15 percent the cumulative duty increase for car imports.

Exports in the motoring industry say vehicles worth $500 million were imported in 2015, making car imports one of the single largest contributors to the import bill.

Duty paid on importation of motor vehicles into Zimbabwe is based on the Cost, Insurance and Freight value plus other incidental charges and expenses incurred in the purchase of the vehicle and its subsequent transportation up to the first point of entry into Zimbabwe.

The charges that are levied are Customs duty, Surtax and Value Added Tax (Vat).

Both customs duty and surtax are calculated on the value for duty purposes (VDP).

VAT is calculated on the total of VDP plus the calculated customs duty payable, with passenger motor vehicles more than five years being charged surtax at a rate of 35 percent.

Comments (3)

certainly the number plate price is too high. some one somewhere please investigate CVR. also look at the price of the reg book and 3rd number plate. they charge $35... passport with many pages is $53 and a car book is $35.. what is the money being used for..its being looted somewhere.. tells us what has been invested with this extortion price of number plates..zimbos lets say no to this abuse

chirenga - 30 October 2016

Mujuru makes the number plates, and at the currant rate if Importation and resale of cars, she rakes in 1 million dollars a month. Why must we change the number plates when we buy a local car - why cant we just pay $20 for the paperwork to be changed. Why does this government have to go to Parliament to change the price of number plates - it doesn't do that if it wants to change the price of petrol or diesel. You are all just thieves. Listen to the people, Joram Gumbo, they have always said that the cost of number plates is too high, so why are you 'currently reviewing the cost........with a view to making them more affordable'? Either stay at $160 for the plates, but they stay with the life of the car, or reduce it to 'affordable' $40 per set.

Homo Erectus - 4 November 2016

If this Gumbo fellow has been "working on it" since early this year, how many months does he need to finish whatever tomfoolery he is doing?

Sagitarr - 7 November 2016

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