Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube has increased the import duty on the importation of luxury vehicles beginning January 1.
The new rates are contained in Statutory Instrument 239A of 2023 published in an extra-ordinary Government Gazette on Wednesday in terms of the Customs and Excise Act and may be cited as the Customs and Excise (Surcharge) Notice, 2023.
“A surcharge specified in the Schedule to this notice shall apply on motor vehicles with Free On-Board values specified therein. The surcharge shall not apply to motor vehicles of a commercial nature and importations by Government,” reads part of the SI.
According the SI vehicles with a Free On Board value of between US$120 000 and US$300 000 will pay a surcharge of 30 percent, while those valued at US$300 001 to US$700 000 will be taxed at 40 percent while those above US$700 000 will pay 50 percent of the value.
The new SI will repeal Statutory Instrument 87 of 2023 which prescribed a surcharge of 30 percent on vehicles valued at US$120 000 or more which shall cease to apply on December 31.
