Presenting the 2019 Budget at Parliament yesterday, Minister Ncube said, “Our import bill has been dominated by a wide range of imports, some of which are not critical or strategic.
“During the course of 2017 and 2018, government witnessed a surge in the importation of non-productive goods, particularly motor vehicles,” said Prof Mthuli.
Introducing the payment of import duty on luxury vehicles, Minister Mthuli said, “Honourable Members will be aware that Government has over the years, implemented demand management measures, with a view to redirect usage of the scarce foreign currency to productive industries. Such measures include adjustments to the customs duty regime and control of imported goods through the licensing system,” he added.
“In order to redirect use of scarce foreign currency to the productive sectors of the economy, I propose that customs duty on motor vehicles be levied in foreign currency acceptable as legal tender, with effect from 23 November 2018,” Prof Mthuli said.
He, however, exempted commercial motor vehicles and vehicles used by the physically challenged.
Members of the public welcomed the idea saying if someone can import a vehicle as expensive as a Bugatti then they should also be prepared to remit their duty in foreign currency.
Kudzai Mutisi through his twitter handle @KMutisi applauded Prof Ncube for introducing import duty of vehicles in foreign currency while he lambasted those who were condemning it.
“When you see grown men and women crying to import, then know that the country is full of lazy thinkers. You are crying to export your jobs to other countries? Upgrade your thinking @MthuliNcube can’t ban import; he can discourage them through taxes! Well done Prof Mthuli Ncube,” said Mutisi.
