MOTOR industry stakeholders on Wednesday took the Zimbabwe Revenue Authority (Zimra) commissioner for projects and planning, Elisha Mudzi, to task over Zimra’s policy regarding duty and taxes. <
Motor industry officials questioned why Zimra was charging them Value Added Tax when some of the companies were in the business of reselling vehicles.
They said there was no basis for the authority to take over the registration of vehicles.
“Are you saying that after paying the usual duty for cars at the port of entry we still have to be cleared by police in Harare and not in Beitbridge?” said one car dealer.
“Does that not show the need for proper structures to allow your new process to operate effectively?”
The questions were raised after Mudzi said the registration procedures for cars entering ports such as Beitbridge had to be completed in Harare.
Mudzi, who was the guest speaker at a function hosted by the Zimbabwe Institute of Management, referred some of the questions to his parent ministry after failing to provide answers.
Zimra recently took over the registration of vehicles from the Central Vehicle Registry.
Car dealers also questioned Zimra’s ability to evaluate vehicles in situations involving change of ownership, with some saying the authority did not have competent personnel to evaluate vehicles, a situation which Mudzi confirmed.
“I am sorry that the question that you have asked is beyond me, it’s more of a policy issue for the ministry to clarify.
“We are just an implementary vehicle for the ministry in terms of duty and taxes,” said Mudzi.
Car dealers accused Zimra personnel of over-valuing vehicles and questioned who would pay the difference in that case.
“Your officers in some cases value the car more than what it is bought for,” said one motor dealer.