Letter to the Editor

Standard taxes will curb corruption

Dear editor,
I WOULD like to commend Government for introducing the unambiguous standard taxes relating to importing used vehicles by enacting Customs and Excise (Amendment) Act No. 14 of 2017.

Surely, this will curb corruption.
However, it seems the Zambia Revenue Authority is likely to cause confusion in the implementation of the aforesaid Act. The amended section 76A of the Customs and Excise (Amendment) Act No.
14 of 2017 states: “…the rates for used motor vehicles shall be as specified in the Third Schedule.” The content of Annex I of ZRA Customs Notice No. 22 of 2017 is at variance with the Third Schedule of the Customs and Excise (Amendment) Act No. 14 of 2017.
For example, whereas Part II of the Third Schedule of the Customs and Excise (Amendment) Act No. 14 of 2014 provides that customs duty and excise duty chargeable on a station wagon vehicle of cylinder capacity between 2500cc – 3000cc which is aged above five years (HS Code 87032390) is K13,536.55 and K17,597.51 respectively (i.e. the total duty being K31,137.06); Part B of Annex I to the ZRA Customs Notice No. 22 of 2017 indicates that total duty payable on a Station Wagon of the same cylinder capacity as aforesaid is K43,335.00. According to my calculation, there is a discrepancy of K12,197.94.
I have contacted ZRA customer service centre but no one has offered any clear explanation as to why the contents of Annex I of ZRA Customs Notice no. 22 of 2017 conflict with the provisions of the law (the amended section 76A of the Customs and Excise (Amendment) Act No. 14 of 2017).
I urge ZRA to quickly rectify this anomaly before Zambians who are importing used motor vehicles can further be unfairly taxed.
GANIZANI BANDA



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