Duty free cars for retired senior civil servants

Finance and Economic Development Minister Mthuli Ncube

RETIRED senior public servants can now import cars with the maximum set between US$40 000 and US$60 000, depending on grade, within five years of retirement following the gazetting of Statutory Instrument 134 of 2023 by Finance and Economic Development Minister Mthuli Ncube on Monday.

This follow the regulations last year allowing civil servants in the grades of deputy director and below to import cars duty free while still working. More senior staff often have access to work cars, so the duty-free benefit comes after retirement when they lose the work car.

The regulations may be cited as the Customs and Excise (General) (Amendment) Regulations, 2023 (No. 115) and will benefit those who were employed by the Public Service Commission or the independent commissions and held positions between chief director or its equivalent and permanent secretary or its equivalent, the top rank, at the time of their retirement.

The facility will be on a once off basis and will benefit the retired public servant within five years of retirement.

The imported vehicle must be less than 10 years of manufacture at the date of importation.

“The maximum value of the import is US$40 000 for chief directors rising to US$60 000 for retired permanent secretaries.

To benefit from the rebate, retired senior public servant will have submit to the Commissioner (of Zimra); an application letter to be considered as a beneficiary; a letter from the Ministry where the retired senior public servant was last employed confirming their date of retirement and position held; a copy of the intended beneficiary retired senior public servant’s driver’s licence.

In consideration of an application for a rebate, the Commissioner may revalue the motor vehicle in line with the existing customs valuation regulations in cases where he or she suspects undervaluation of the car.

Last year, Prof Ncube set up to US$10 000 duty free vehicles for public servants at deputy director and below while legislators were allowed to import two, instead of just one vehicle during the life of their five-year term.

The benchmarks that were set range from US$3 500 up to US$10 000 for the public servants while legislators will have to import a second vehicle of up to US$60 000.


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