Did you know that in order to stimulate growth in the safari industry, the Minister of Finance and Economic Development has introduced a suspension of duty on specified new motor vehicles imported or taken out of bond for exclusive use in the safari business.
Such vehicles may come into the country customs duty free in terms of the Customs and Excise (Suspension) (Amendment) Regulations, 2014 published in Statutory Instrument 41 of 2014.
Only Value Added Tax at a rate of 15 percent is payable on these vehicles. The VAT is charged on a value which is made up of the cost of the vehicle, insurance and freight charges and any other incidental charges up to the point of entry into Zimbabwe. This concession is valid only for a year and took effect from January 1 this year to December 31, 2014.
Who is eligible?
Any person or organisation that is registered with the Zimbabwe Tourism Authority and the Safari Operators Association of Zimbabwe for a period of not less than two years and is approved by the Minister of Finance and Economic Development.
Type of goods that qualify
New pick-up vehicles and trucks with a gross vehicle mass not exceeding 20 tonnes.
NB: Locally assembled models of the above vehicles are not allowed.
Application procedure
Prior to importation or removal from bond of the vehicles the Safari operator is required to apply in writing to the Commissioner General of the Zimbabwe Revenue Authority at the nearest ZIMRA office and submit the following:
a completed suspension of duty form SR2 obtained from the Ministry of Finance and Economic Development;
a complete specification of each model of the vehicle to be imported;
a valid tax clearance certificate and proof of registration with ZIMRA.
Upon fulfilling the above conditions, a letter authorising clearance will be issued by the ZIMRA Commissioner General.
How are the vehicles cleared?
The vehicles should be cleared at the ZIMRA office nearest to the premises of the safari operator and should be done through a ZIMRA registered clearing agent. One may get a list of the registered clearing agents online www.zimra.co.zw or from any of the ZIMRA offices countrywide. The safari operator is required to submit a declaration signed by him or her stating that the goods so imported are to be used solely in the operator’s business.
Please Note: Vehicles entered under this concession should not be disposed of within five years of their date of importation or removal from bond except with the written permission of the Commissioner General of the Zimbabwe Revenue Authority and payment of the duty originally suspended. Any contravention of these requirements may result in the seizure of the vehicles.
NB: Safari operators are hereby encouraged to take advantage of this concession as it expires on 31st December 2014.
Disclaimer: This article was compiled by the Zimbabwe Revenue Authority for information purposes this article and only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in no liability will attach to the Zimbabwe Revenue Authority.
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