Civil servants are currently under investigation for allegedly misusing the vehicle rebate system. It has come to light that certain government employees are importing cars duty-free on behalf of others, in exchange for a fee.
The relevant legal framework includes Statutory Instrument (SI) 154 of 2001 (Customs and Excise General Regulations), which, when read alongside SI 124 of 2022, allows for a duty rebate on motor vehicles brought into or taken out of bond by civil servants and members of independent commissions.
To qualify for this rebate, a government employee must hold a valid driver’s license and have served for at least 10 years. Additionally, only one vehicle can be imported every five years, with its value determined by the employee’s grade.
NewsDay reports that the rebate system is being exploited, prompting investigations by both the Zimbabwe Anti-Corruption Commission (Zacc) and the Zimbabwe Revenue Authority (Zimra). As of last October, approximately 19,000 civil servants were under scrutiny for corruption related to import duty on vehicles.
These civil servants are importing vehicles on behalf of others, charging fees ranging from US$700 to US$1,500, depending on the vehicle type. Curiously, the vehicle is registered in the name of the civil servant, even though it is driven by someone else.
While the government has extended the duty-free import waiver for civil servants, concerns persist that some of these imported cars are ending up with car dealers. These dealers reportedly pay up to US$1,000 per vehicle, based on the make and price.
Furthermore, there are allegations that certain car dealers in Harare and other areas are importing vehicles in the names of civil servants, allowing the civil servants to profit without personally wanting a duty-free car. This fraudulent activity has deprived the State of revenue, as those who should pay duty are now importing vehicles without doing so.
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