Govt boosts local auto assembly, suspends duty on vehicle kits for 5 years
Maureen Aguta
In its effort to boost local assembly of automobiles in the country, the Federal Government of Zimbabwe has announced the suspension of customs duty on semi-knocked down (SKD) single and double cab motor vehicle kits imported or taken out of bond by an approved assembler for the assembly of single and double cab motor vehicles.
This suspension takes effect from January 1, 2025 to December 31, 2029.
According to Statutory Instrument 194 of 2024, published in the Government Gazette on December 30, 2024, Treasury has also suspended customs duty on semi-knocked down bus kits imported or taken out of bond by an approved assembler for the assembly of buses.
This suspension will also be in effect for five years, from January 1, 2025, to December 31, 2029.
The Statutory Instrument states thus:
“IT is hereby notified that the Minister of Finance, Economic Development and Investment Promotion has, in terms of section 235 as read with section 120 of the Customs and Excise Act [Chapter 23:02], made the following regulations:-
- These regulations may be cited as the Customs and Excise (Suspension) (Amendment) Regulations, 2024 (No. 277).
- These regulations shall come into effect on 1st January, 2025.
- The Customs and Excise (Suspension) Regulations, 2003, published in Statutory Instrument 257 of 2003 (hereinafter called “the principal regulations”), are amended as follows-
(a) In section 9V (“Suspension of duty on semi-knocked down (SKD) single and double cab motor vehicle kits imported by approved assembler“) by the deletion of subsection (7) and substitution of-
“(7) Customs duty is suspended to a rate of zero per centum on SKD single and double cab motor vehicle kits imported or taken out of bond by an approved assembler for use in the assembly of single and double cab motor vehicles in terms of this section for a period of five years from 1st January, 2025 to 31st December, 2029.”
(b) By the insertion in section 9HH “Suspension of duty on public service buses imported by approved importers” of following-
“With effect from 1st January, 2025, duty suspension shall only apply to public services buses that were purchased on or before 28th November, 2024, and cleared for consumption by 14th February 2025.
“Thereafter the suspension of duty provided under this section shall cease and duty shall be payable on all public service buses imported into Zimbabwe.”
(c) In section 9KK (“Suspension of duty on semi-knocked down (SKD) bus kits imported by approved assembler”) by the deletion in of subsection (2) and substitution of-
“(2) Customs duty is suspended to a rate of zero per centum on SKD bus kits imported or taken out of bond by an approved assembler for use in the assembly of buses in terms of this section for a period of five years from 1st January, 2025 to 31st December, 2029.”