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All Duties, Taxes On Car Imports Now Payable In Zimbabwe Dollars - Finance Minister

All Duties, Taxes On Car Imports Now Payable In Zimbabwe  Dollars - Finance Minister

Finance and Economic Development Minister, Professor Mthuli Ncube, has said the government has moved to scrap foreign currency duty payment on vehicle imports alongside other measures to enhance the wider use of the Zimbabwean Dollar.

In a statement Friday, Ncube said the measures were being introduced following a stop-gap measure to arrest inflation and promote the local currency.

He said to date, there has been consistency on the monetary front through due diligence exercised by the Reserve Bank of Zimbabwe which has seen coordination between fiscal and monetary authorities. Ncube said:

All duties and taxes on the importation of designated motor vehicles are now payable in Zimbabwe dollars again up to a limit of 50% of duties and taxes payable and all domestic taxes due from exporters on their export receipts are now payable in both foreign and local currency in direct proportion to the approved export retention.

All mining royalties are now payable in Zimbabwe Dollars up to a limit of 50% of royalties due.

Government, through various agencies, is presently seized with instituting various measures to enhance the formal use of the domestic currency. These measures are aimed at stemming illegal trade in foreign currency and its associated twin, that of parallel market benchmarking or indexation of prices of goods and services at parallel market exchange rates.

Under the new measures, if an exporter receives foreign currency, for instance, US$1 000 at a 40% surrender ratio (60% retention), he or she will be obliged 40% of the tax in Zimbabwean and 60% in foreign currency.

He said the latest developments are prompted by the rapid growth of privately-held foreign currency reserves from levels of around US$300 million in 2018, to over US$2 billion currently in Zimbabwean banks.

He added that official reserves have also increased from less than US$100 million to over US$1.2 billion currently, which includes the US$960 million equivalent in SDRs recently availed by the IMF to Zimbabwe.

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4 Comments

MaFyt 3 months ago

Ko nhai @Nkust 3 days,

waiti

Mirai varume re-dollarisation yenyufor two months chete

ko asi une chipande chekare kare chausati waclear nanhasi hr chauri,kuda ktanga wavuraya


Tkt 3 months ago

@Sponono you are ryt my brother,

kungoti vanhu vazhinji,patinenge tichi taura isu maZANU-PF hamu teereri, i wrote on this platform late last year that Civil Servants will soon be getting their sallary pegged wit the USD - almost or atleast half of it in Nostro Accs the remainder in local Currency

ndakanzwa rimwe last time rakuti hee vana,Tkt, Mafyt wat wat makuzvi ona kunge maECONOMIST but chokwadi hachi vanziki chino buda chega


Peaceful 3 months ago

Mahumbwe aya.


Sponono 3 months ago

Mthuli is acting clever He is trying to reintroduce that same system we had whereby The bond was there to compliment the US , He is slowly coming back to his senses... Don't worry very soon dollarisation will be official but working hand in hand ne Zim dollar.

Soon everyone will be getting 50% US Official



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