NEW CUSTOMS DUTY RATES DIMINISH ADVANTAGE OF BUYING SMALLER CARS-DODIA

NEW CUSTOMS DUTY RATES DIMINISH ADVANTAGE OF BUYING SMALLER CARS-DODIA

Renowned Zambian economist Yusuf Dodia has weighed in on the Zambia Revenue Authority’s (ZRA) newly introduced customs charge rates for used vehicles five years or older. In a statement to Spice FM, Dodia noted that the new rates, which took effect in 2025, are a clear indicator that the customs duty rate is fixed, regardless of the purchase price of the vehicle.

According to Dodia, this means that the benefit of buying smaller cars is diminished, as the customs duty rate remains the same for vehicles within the same age range. This could put pressure on many Zambians who rely on importing second-hand cars for personal and business use.

However, Dodia also highlighted the positive aspects of the new system. With the ZRA publishing a clear chart of the charges, the opportunity for corruption between the public and ZRA offices is significantly reduced. The predictable system makes all transactions accountable and transparent, with fixed numbers that are non-negotiable.

Dodia expects the new system to bring about increased efficiency at border crossings, as the customs clearance process is streamlined and no longer subject to negotiation. This development is likely to have a significant impact on the importation of used vehicles in Zambia, and it remains to be seen how the public will adapt to the new rates.

The Zambia Revenue Authority has introduced the new customs charge rates as part of its efforts to improve revenue collection and streamline customs procedures. The authority has encouraged importers and the general public to familiarize themselves with the new rates and procedures to ensure a smooth transition.