Fifty per cent of duty on car imports will now be paid in local currency, according to Statutory Instrument 72A of 2022 published on Friday.
Under the new regulations, half of the import duty payable will now be paid in foreign currency and the balance in local currency at the prevailing official auction rate.
However, Government departments will continue paying 100 per cent duty in local currency, at the prevailing rates. SI 72A of 2022 reads:
IT is hereby notified that the Minister of Finance and Economic Development, in terms of section 115(3) of the Customs and Excise Act [Chapter 23:02], made the following notice:—
1. This notice may be cited as the Customs and Excise (Designation of Foreign Currency Dutiable Goods) (Amendment) Notice, 2022 (No. 4).
2. The Customs and Excise (Designation of Foreign Currency Dutiable Goods) Notice, 2018, published in Statutory Instrument 252A of 2018, is amended in section (3) by the deletion of subsection (2)
and insertion of the following—
“(2) Every person who imports any goods designated in terms of this notice shall pay duty in foreign currency:
Provided that duty on designated motor vehicles imported by Government Ministries and Departments shall be paid in local currency at the official weekly average foreign currency exchange
(2A) Fifty per centum (50%) of the duty on motor vehicles of tariff codes 8703.21.90 and 8703.22.90 imported by any other person other than those mentioned in (2) shall be payable in foreign currency, whereas the remainder shall be payable in local currency at the official weekly average foreign currency exchange rate.”